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Despite being the world’s second most valuable company, Microsoft has laid off more than 15,000 employees in 2025, although its headcount remains mostly the same after recruiting new faces.
Microsoft CEO Satya Nadella, has told staff in a memo that the cuts have been a difficult decision for him.
“Before anything else, I want to speak to what's been weighing heavily on me, and what I know many of you are thinking about: the recent job eliminations,” he said in a memo.
The comments came as Microsoft reached a market value of $3.8trillion and its stock closed above $500 for the first time earlier this month. “Microsoft is being recognized and rewarded at levels never seen before,” Nadella wrote. “And yet, at the same time, we've undergone layoffs. This is the enigma of success in an industry that has no franchise value."
Workforce cuts amid record profits
The software giant posted a net income of $75billion over the last three quarters. Profit for the first three months of 2025 rose 18% to $25.8billion, beating expectations.
Nadella described the decisions as “some of the most difficult” he has had to make, acknowledging “the uncertainty and seeming incongruence of the times we're in” while insisting Microsoft is “thriving,” with strong growth, strategy, and market performance.
AI investment rises to $80billion
The company is shifting its focus and invested over $80billion in AI infrastructure during the fiscal year ending June. Nadella described Microsoft's mission evolving from a “software factory” to an “intelligence engine.”
He added: “The company's future opportunity was to bring AI to all eight billion people on the planet.”
Despite the job cuts, Nadella said Microsoft’s headcount was “relatively unchanged,” as new workers continue to be hired. As of June 2024, Microsoft employed 228,000 people.
“Progress isn't linear,” Nadella added. “It is sometimes dissonant, and always demanding.” He did not rule out further layoffs.
