Microsoft CEO Satya Nadella sent a company-wide memo to over 200,000 employees on Thursday, addressing the recent layoffs of more than 15,000 workers, including approximately 9,000 in early July alone, while outlining the company’s evolving mission, priorities, and cultural focus amid a transformative shift toward artificial intelligence (AI). The memo, titled “Recommitting to our why, what, and how”, acknowledges the emotional weight of the job cuts and seeks to re-ground employees in Microsoft’s strategic direction.
Layoffs Amid Financial Success: “The Enigma of Success”
Nadella acknowledged the emotional toll of the job cuts, stating, “These decisions are among the most difficult we have to make. They affect people we’ve worked alongside, learned from, and shared countless moments with—our colleagues, teammates, and friends.” He expressed gratitude to affected employees, noting, “Their contributions have shaped who we are as a company.” The layoffs, primarily impacting sales and gaming divisions like Xbox and King, aim to create flatter, more agile teams. About 2,290 employees in Redmond, Washington, and others globally, including at King’s Barcelona office, are affected, with severance packages and job placement assistance offered.
Despite Microsoft’s strong financial performance; $75 billion in net income over three fiscal quarters and a stock price surpassing $500. Nadella described the layoffs as navigating “the enigma of success” in a dynamic industry. The cuts coincide with Microsoft’s filing for 6,327 H-1B visas for software engineers, raising concerns among Indian visa workers and Non-Resident Indians (NRIs) about job security and visa status, particularly given the 60-day grace period for H-1B holders to find new employment.
AI-Driven Mission and Priorities
Nadella emphasized a reimagined mission: “What does empowerment look like in the era of AI? It’s about building tools that empower everyone to create their own tools.” Microsoft’s $80 billion investment in AI infrastructure and programs like the $4 billion “Elevate” initiative to train millions in AI skills reflect this shift. He outlined three priorities: security, quality, and AI transformation, calling security and quality “non-negotiable” after recent incidents and AI transformation as reimagining the tech stack to empower innovation.
Cultural Focus Amid Challenges
Nadella urged employees to maintain a “growth mindset,” stating, “It has reshaped our culture and helped us lead with greater humility and empathy.” However, the layoffs have sparked criticism, with former engineer James McCaffrey describing Microsoft as a “shameful company” for abrupt terminations, fueling concerns about a growing culture of fear.
Broader Context
The layoffs align with industry trends, with 63,823 tech jobs cut across 150 companies in 2025. Recent remarks by President Donald Trump urging tech giants to prioritize American hiring further complicate prospects for Indian professionals, intensifying competition and visa uncertainties.
Microsoft’s pivot to AI-driven innovation underscores both opportunities and challenges for its workforce, particularly for NRIs navigating a tightening job market.
For more details, read the full story at NRI News Club and related coverage on Trump’s hiring remarks.
Sources: Microsoft Official Communications, The Verge, GeekWire, CNBC, NRI News Club
