Tech giant Microsoft laid off over 15,000 employees in 2025 to make its operations more efficient. This massive workforce reduction saw CEO Satya Nadella’s total annual compensation increase by 22 percent to $96.5 million. The majority of Nadella’s earnings came from stock awards, with cash incentives totaling $9.5 million and a base salary of $2.5 million.

Microsoft Makes Controversial Decision

The layoffs coincided with the company’s massive investments in artificial intelligence (AI). Microsoft invested $80 billion in AI infrastructure and launched a major shift toward AI-powered business processes. The layoffs occurred in two phases: approximately 6,000 workers, equivalent to 3 percent of the global workforce, were laid off in May 2025, followed by another 9,000 in July.

According to a statement released last week, Nadella’s compensation increase exceeded his previous year’s earnings. Last year, despite Nadella’s cash incentives being cut in half at his request, his total earnings increased by 63 percent to $79.11 million. This package included $71 million in stock awards and $5.2 million in cash incentives.

Microsoft’s fiscal year ending June 30, 2025, was exceptionally strong. The company’s revenue increased by 15 percent to $281.7 billion, and its net profit increased by 16 percent to $101.8 billion. Market performance followed suit; its share price rose from $354 in early April to $523 in October, a 47.7 percent increase.

Since Nadella took over from Steve Ballmer in 2014, Microsoft’s revenue has tripled, its net profit quadrupled, and its earnings per share quintupled. The company’s market value, which was approximately $300 billion at the time, has reached $3.8 trillion today, making Microsoft the third-largest company in the world.