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What’s Really Happening Inside Microsoft When 18,000 Workers Lost Their Jobs?
When your company makes more money than ever but fires thousands of people, something is seriously wrong. That’s exactly what’s happening at Microsoft right now. Let me break down what’s really going on.
The Numbers Don’t Add Up
Microsoft just cut 9,000 more jobs in July 2025. This brings the total to over 15,000 people fired this year alone. These aren’t small numbers. We’re talking about real people with families who got the boot while the company made $75 billion in profit over three quarters.
Think about that for a second. The company is swimming in money but still throws people out the door. That’s not how good companies work.
Nadella’s Confusing Message
CEO Satya Nadella sent a memo to workers trying to explain this mess. He called it an “enigma of success”. What does that even mean? It sounds like fancy words to hide the real problem.
Here’s what he said: Microsoft is doing great, making tons of money, and investing more than ever. But they’re still firing people. He admits this doesn’t make sense but tries to paint it as some kind of necessary sacrifice for the AI future.
Employees aren’t buying it. One worker told reporters: “Couldn’t tell if he was trying to mend feelings or prepare people for more pain”. Another called it “tone deaf” and said Nadella “doesn’t give a damn about the canaries in the coal mine”.
The Real Problem: Toxic Culture
Here’s where it gets really bad. A former Microsoft engineer named James McCaffrey worked there for 28 years. He left in June 2025 and wrote a blog post that’s spreading like wildfire among Microsoft workers.
McCaffrey says his friends who still work there describe a “culture of lies and discrimination”. He writes that Microsoft has gone “from a good company into a shameful company with little-to-no internal integrity”.
This isn’t some outsider complaining. This is someone who spent almost three decades building the company. When longtime employees say things like this, you know there’s a serious problem.
What’s Really Going On
Microsoft is spending $80 billion on AI infrastructure. They need that money to compete with other tech giants. So they’re cutting people to pay for computers and data centers.
The company is also trying to “flatten management layers”. This is corporate speak for firing middle managers and making fewer people do more work. They want to increase their “span of control” – having each boss manage more workers.
But here’s the cruel part: while they fire thousands of regular employees, they’re hiring expensive AI experts from Google and other companies. They’re literally replacing their own people with outsiders who cost more money.
The Warning Signs
Several red flags show Microsoft’s culture is getting worse:
- Sudden firings: People are getting blindsided by unexpected terminations
- Fear culture: Workers now operate under constant fear and pressure
- Poor communication: The company isn’t being honest about what’s happening
- Performance pressure: Everyone feels like they could be next
Former employees and current workers say this feels like the “old Microsoft” – the bad version from before Nadella became CEO. All the progress they made over the past decade is disappearing.
Employee Reactions Tell the Story
When Nadella sent his memo, workers didn’t feel better. They felt worse. Some responses from inside the company show the real mood:
- “It’s a ludicrous response that prioritizes KPIs over people”
- “The guy doesn’t give a damn about the canaries in the coal mine”
- Workers are speculating about more cuts coming
One employee even wrote a parody memo saying: “The people you just fired were the ones who got comfortable. Do not get comfortable… Stay useful or you will be replaced”.
This isn’t the language of a healthy workplace. This is fear talking.
What This Means for Workers
If you work at Microsoft or any big tech company, here’s what you need to know:
- Your job isn’t safe even when the company makes record profits
- AI investments matter more than people to executives
- Loyalty doesn’t protect you – even 28-year veterans get pushed out
- Corporate speak often hides uncomfortable truths
- Culture can change fast when money gets tight
Microsoft’s situation shows us something disturbing about modern corporations. They can make billions in profit, spend billions on new technology, and still fire thousands of people. Then they try to explain it away with confusing language about “enigmas” and “transformation.”
But workers see through this. They know what’s really happening. The company is putting profits and AI investments ahead of people. That’s creating a toxic environment where nobody feels safe.
This isn’t just Microsoft’s problem. It’s happening across the tech industry. Companies are choosing machines over humans, even when they don’t have to. That’s not progress. That’s just greed disguised as innovation.
The real question is: How long will workers put up with this treatment? And what will happen to companies that destroy their own culture in the name of technological advancement?
Microsoft used to be known for treating people well. Now it’s becoming known for the opposite. That’s not an “enigma of success.” That’s just a failure to do the right thing.