Satya Nadella urges Microsoft employees to ‘rebuild trust’ after layoffs, return-to-office push

In a recent internal meeting, Nadella acknowledged that leadership must do better to address employee frustrations. “I take it as feedback for me and everyone in the leadership team, because at the end of the day, I think we can do better, and we will do better,” he told staff, according to CNBC.

By Storyboard18| Sep 12, 2025 11:12 AM

Satya Nadella urges Microsoft employees to ‘rebuild trust’ after layoffs, return-to-office push

Nadella defended the push for in-person presence, particularly for interns and early-career staff, stressing that mentorship and collaboration risk breaking down in a remote-only setup.

Microsoft CEO Satya Nadella has urged employees to “rebuild trust” after a turbulent year marked by layoffs, office return mandates and internal dissent even as the tech giant’s financial performance remains strong.

In a recent internal meeting, Nadella acknowledged that leadership must do better to address employee frustrations. “I take it as feedback for me and everyone in the leadership team, because at the end of the day, I think we can do better, and we will do better,” he told staff, CNBC reported.

The remarks come after Microsoft cut 9,000 jobs in July, following earlier rounds of layoffs, and ordered employees near its Redmond headquarters to return to the office three days a week starting February. The policy has stirred discontent, with HR chief Amy Coleman admitting that employee feedback has been “mixed,” as many feel their autonomy is eroding. Despite this, Microsoft workers around Seattle already average 2.4 office visits weekly.

Nadella defended the push for in-person presence, particularly for interns and early-career staff, stressing that mentorship and collaboration risk breaking down in a remote-only setup. “Those are things that just will break a social contract,” he warned.

Nadella admitted that some of Microsoft’s most profitable businesses may not remain so forever. “Some of the margin that we love today may not be there tomorrow,” he cautioned. “That means you have to be way ahead of all of those going away.”

The meeting also touched on internal tensions surrounding Microsoft’s cloud services in Israel. President Brad Smith reassured staff that Jewish employees facing harassment would be protected, underscoring, “There is no room for antisemitism at Microsoft.”

As Microsoft enters its 50th year, Nadella emphasized that survival will depend on constant reinvention. “Capital markets have one simple truth. There is no permission for any company to exist forever,” he reminded employees.