Microsoft’s record stock run collides with Nadella’s admission that 15,000 layoffs still 'hurt'

Microsoft CEO Satya Nadella recently addressed employees in a company-wide memo after a wrenching period: the tech giant has cut more than 15,000 jobs since the start of the year. In the note, Nadella wrote that these layoffs have been “weighing heavily” on him, and he acknowledged the wave of anxiety running through Microsoft’s massive workforce, which last officially counted at 228,000 in June 2024.

The layoffs, which included 9,000 roles axed just a week before the memo, sent Microsoft’s stock rising to a new record. Investors pushed the share price past $500 for the first time on July 9, marking a moment that illustrates how financial markets often reward cost-cutting, even as employees face uncertainty. Nadella called out “the enigma of success in an industry that has no franchise value,” describing a harsh reality where progress swings between different extremes and always demands something new.

Across the tech sector in 2025, job losses echo Microsoft’s situation. Over 80,000 positions have vanished this year industry-wide. Recruit Holdings, parent of Indeed and Glassdoor, confirmed 1,300 layoffs amid similar pressures, some blamed on shifts to AI.

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On internal forums and social media, some Microsoft team members said the layoffs cut into their trust and loyalty. One longtime employee wrote on LinkedIn, “This has done so much damage to that loyalty because it has shown that Microsoft’s espoused values do not apply to business decisions at the macro level.”

Despite these cuts, Microsoft’s dominant footprint continues. It stands as the world’s most valuable company after Nvidia. Windows, Office, and a leap in Azure cloud growth—fueled by companies leveraging Nvidia hardware for AI workloads—have all fed into both its revenues and its current standing.

In his memo, Nadella pushed for Microsoft to rethink its purpose for a tech environment now shaped by artificial intelligence. He stressed Microsoft’s future focus: giving people and organizations the means to build their own tools, not just use those made for them. The company will report its next quarterly earnings on July 30, with both investors and employees watching closely for signs of stability amid big changes.

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