Microsoft CEO Admits Broken Employee Trust After Layoffs, Return-to-Office Push

Microsoft CEO Satya Nadella acknowledged the need to rebuild trust with employees following layoffs and a new return-to-office mandate requiring staff near the Redmond headquarters to work in the office three days a week starting in February. During an online meeting, Nadella responded to concerns about a perceived lack of empathy in the company's culture, expressing that the leadership team can and will do better. Amy Coleman, Microsoft’s Chief Human Resources Officer, noted mixed reactions to the return-to-office policy, with some employees fearing loss of autonomy, although many around Seattle were already averaging 2.4 office visits per week. Nadella emphasized the importance of physical presence for mentoring interns and early-career staff, warning that remote work could break a social contract. He also cautioned about challenges ahead, including potential declines in profitability for some of Microsoft’s most lucrative businesses, underscoring the need for intellectual honesty and proactive renewal. Despite internal unrest, Microsoft’s stock and cloud revenue have grown, reflecting Wall Street’s more favorable view of the company’s outlook.