‘Can Do Better’: Nadella Says Microsoft Must Rebuild Employee Trust Amid Layoffs, RTO Mandate

Last Updated:September 14, 2025, 21:17 IST

Nadella's remarks came during an internal meeting with staff on Thursday, where concerns about company culture and employee morale were raised

Microsoft CEO Satya Nadella. (File Photo)

Microsoft CEO Satya Nadella has acknowledged the need to rebuild trust with employees, following a series of job cuts and the company’s recent return-to-office (RTO) policy. His remarks came during an internal meeting with staff on Thursday, where concerns about company culture and employee morale were raised.

An audio recording of the meeting, obtained by CNBC, revealed Nadella responding directly to an employee’s question about a perceived lack of empathy within the company

“I deeply appreciate that, the question and the sentiment behind it," he said in the recording. “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."

The meeting comes just days after Microsoft announced that employees living near its headquarters in Redmond, Washington, will be required to work from the office at least three days a week starting in February next year.

Earlier in July, Microsoft laid off 9,000 employees, following smaller rounds of job cuts earlier in the year. The layoffs, combined with the RTO mandate, have sparked unease within the company, particularly around transparency, autonomy, and leadership empathy.

Amy Coleman, Microsoft’s head of human resources, acknowledged during the meeting that the response to the RTO decision has been mixed. Some employees feel they are losing flexibility, while others have already returned to a hybrid routine. According to internal data, workers in the Seattle area are currently averaging 2.4 days in the office per week.

Nadella also pointed out that remote work, while useful, poses challenges — especially for younger employees and new hires. He expressed concern that a lack of in-person interaction may hinder mentorship and development.

“Management is just mostly all remote, but the interns are all, you know, in one location," he noted. “And so those are things that just will break a social contract."

While Microsoft had been slower than some other tech giants in issuing a return-to-office policy, the shift aligns it more closely with companies like Amazon, which brought workers back five days a week earlier this year.

News tech ‘Can Do Better’: Nadella Says Microsoft Must Rebuild Employee Trust Amid Layoffs, RTO Mandate

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