Finance

Microsoft Workers Express Anger and Confusion Over CEO's Memo on Layoffs and AI Spending

2025-07-25

Author: Wei

In a surprising twist, Microsoft employees are voicing mixed emotions—suspicion, anger, and speculation—after CEO Satya Nadella's recent memo aimed at addressing the company's controversial job cuts while raking in massive profits and planning substantial investments in AI.

This year, Microsoft has slashed thousands of jobs despite earning an impressive $75 billion in profits over the last three fiscal quarters and announcing plans to spend a staggering $80 billion on AI infrastructure by 2025. The company's stock also reached record highs just this month.

In his Thursday memo, Nadella described the disconnect between layoffs and profitability as the "enigma of success" and indicated that he expects the workforce size to remain stable.

Inside the company, speculation is rampant: Are more job cuts on the horizon? Is Nadella feeling guilty ahead of the upcoming earnings report? Or is this just another attempt to soothe Wall Street's nerves?

Understanding Employee Stress