Microsoft’s CEO Satya Nadella claimed that the company is ‘thriving’ after laying off a record number of employees since the start of 2025.
Microsoft’s CEO, Satya Nadella, recently addressed the company’s widespread layoffs, affecting more than 15,000 employees in 2025, calling them “the most difficult decisions we have to make” in a post shared on Microsoft’s official blog.
Despite the recent cut in June 2025, which laid off 9,100 employees, Nadella insisted that the company is “thriving”, citing a record revenue of $245 billion, a modest 16% increase year-over-year, and bringing home a profit of $109 billion, which is a 24% increase over the previous year.
Moreover, Microsoft’s gaming division, Xbox Game Studios, has seen a reported growth of 5% in Q3 2025, owing to Xbox Game Pass and first-party titles like Call of Duty Black Ops 6, which achieved 3.8 million players on launch day.
However, the Xbox division has seen widespread cuts, including the cancellation of projects like the Perfect Dark Reboot, Everwild, which was reportedly in development for nearly a decade, ZeniMax Online Studio’s internally praised MMORPG Blackbird, Romero Games’ unannounced FPS title, and the closure of The Initiative Studio.
Satya Nadella stated that the cuts were made as part of Microsoft’s strategic shift to AI, with 30% of Microsoft’s code now AI-generated, saving $500 million from support centers alone. Microsoft has reportedly invested billions of dollars in the AI sector, which is currently the company’s top priority. Nadella further stated:
“Just imagine if all 8 billion people could summon a researcher, an analyst, or a coding agent at their fingertips, not just to get information, but to use their expertise to get things done that benefit them.”
This shift in focus has created internal tension, with the laid-off King staff reportedly being replaced by AI tools they helped develop. Microsoft’s recent moves raise questions among industry insiders and gamers, as they believe the company is prioritizing profitability over innovation.
Despite project cancellations and studio closures, Microsoft insists it currently has more than forty active projects. Microsoft’s stock is currently at a historic all-time high of $514.15 as of July 25, 2025, leaving investors unfazed by current gaming developments.
However, video game industry watchers are questioning Microsoft’s decisions and their long-term impact amid the cancellation of highly anticipated titles and loss of high-profile talent.
Rahim Amir Noorali – Tech Writer – 91 articles published on Notebookcheck since 2025
I am a UAE-based tech writer who likes to build and benchmark PCs both professionally and as a hobby. I contribute to multiple tech publications, including TechRadar and NotebookCheck, as well as Game Rant, where I focus primarily on news, commerce, and buying guides. When I’m not scouring the internet for the latest in tech stories, you will find me playing a game of Civilization or DotA with friends and frenemies alike while dropping recommendations for Apple TV+’s Foundation to everyone I come across.
