Are more job cuts coming? Is he feeling guilty about… or…: Microsoft reportedly employees react to CEO Satya Nadella’s memo

Microsoft employees are reportedly questioning CEO Satya Nadella‘s motive behind a memo trying to clarify why the tech large has eradicated 1000’s of jobs whereas producing large income and investing $80 billion in AI infrastructure. According to a report in Business Insider, worker reactions reportedly vary from suspicion about impending job cuts to criticism of what’s being termed as the corporate’s tone-deaf messaging.“As we begin a new fiscal year, I’ve been reflecting on the road we’ve traveled together and the path ahead,” Nadella wrote in Thursday’s memo. “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.”

Workers speculate on CEO’s memo on layoffs clarification

Inside Microsoft, the report claimed, employees are questioning whether or not the memo alerts more job cuts forward, displays guilt over sturdy earnings, or serves as messaging to Wall Street forward of subsequent week’s earnings report. Microsoft has reduce roughly 15,000 employees this yr whereas sustaining roughly $75 billion in revenue over three fiscal quarters.“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,” Nadella acknowledged, expressing gratitude to departed employees whose “contributions have shaped who we are as a company.”One Microsoft worker instructed Business Insider they could not decide if Nadella was “trying to mend feelings or prepare people for more pain.” Another reportedly criticised the corporate for prioritising key efficiency indicators over folks, whereas a 3rd referred to as the memo tone-deaf, evaluating Microsoft to a coal mine targeted solely on extracting more assets.

Staff criticise ‘enigma of success’ rationale as Microsoft inventory hits data

Nadella described the state of affairs as an “enigma of success in an industry that has no franchise value,” explaining that “by every objective measure, Microsoft is thriving—our market performance, strategic positioning, and growth all point up and to the right.”“We’re investing more in CapEx than ever before. Our overall headcount is relatively unchanged, and some of the talent and expertise in our industry and at Microsoft is being recognised and rewarded at levels never seen before. And yet, at the same time, we’ve undergone layoffs,” he wrote.The report mentioned that on worker message boards, employees posted parodies of the memo and criticised its rationale. Some speculated the letter was crafted for Wall Street, reminding traders that layoffs proceed regardless of sturdy enterprise efficiency. Microsoft’s inventory has risen 21% this yr and hit data in July.“The success we want to achieve will be defined by our ability to go through this difficult process of ‘unlearning’ and ‘learning,'” Nadella concluded, expressing confidence that Microsoft “will once again find the resolve, courage, and clarity to deliver on our mission in this new paradigm.”