Microsoft CEO Nadel says the company must resume confidence in employees

Microsoft CEO Satya Nadel Telling staff at the meeting on Thursday, what the company should smooth the relationship with the staff after the announcement of several rounds of dismissal and the compulsory partial return by Personal work.

At a meeting on the Internet, the employee asked the executives to talk about the perceived lack of empathy in the company’s culture from later, and Microsoft accepts to restore confidence with his workforce.

“I deeply appreciate this, the question and the mood behind him,” Nadel said in an audio received by CNBC. “I perceive this as feedback for me and all in the team leadership because in the end, I think we can do better and we will do better.”

Nadel’s comments go after Microsoft reduced 9000 jobs In July, after smaller cuts per month before. On Tuesday, Microsoft said the workers living near the Kokwater headquarters in Redmond, Washington, must come to the office three days a week, starting in February, with a broader performance.

At the Thursday meeting, Amy Coulman, Head of the Microsoft Human Resources Department, that the receipt of the return to the office was ambiguous, and some workers feel that they are losing autonomy. But she said that the staff in Seattle and around it already come on average 2.4 times a week.

Like most of the technology industry, Microsoft is completely remote during the pandemic and especially used their internal video and chat teams that received rapid acceptance during this period. Microsoft was slower than many of its peers to put a refund mandate. Amazon, one of Microsoft’s main rivals, called officers at the offices five days a week In January.

While Nadel and the executive team are considering criticism from some employees, Wall -stitches applaud the growth and execution of the company. This year’s shares have grown by almost 20%, surpassing the wide market, pushing Microsoft’s a market limit up to 3.7 trillion that only passes Nvidia Among the most valuable companies in the world.

In July, Microsoft reported increasing net income by 24% 27 billion dollars. The company’s gross profitability was less than 69%, compared to 71% at the end of 2023. It quickly builds and rented data centers for data to meet the demand for artificial intelligence.

At the meeting, Nadel said that with remote work, new staff and those who at the beginning of their careers do not always feel a sense of apprenticeship or mentoring.

“The leadership is mostly all distant, but the trainees – everything you know, in one place,” he said. “And so these are things that just break the social contract.”

Microsoft did not immediately comment.

Even with the rapid expansion of Microsoft, Nadel said the company was pressure. This is a common topic in Softwareas it concerns the spread of influence of II and its potential to automate work.

“We have a very, very hard work ahead, and this hard process of renewal is, we must do,” Nadel said. “You need to be tough in terms of intellectual honesty in what really should happen.”

In the last quarter, Microsoft Azure Cloud Business increased by 39%, but the profit in Windows and devices increased by only 2.5%.

“Some of the largest enterprises we created may not be so relevant,” Nadel said. “Some of the stocks we love today can be there tomorrow, and it means that you should be ahead of all those who leave, right?”

Microsoft, which celebrated its 50th anniversary in April, will retain its basic values ​​when it faces market realities, Nadel said.

“Capital markets have one simple truth,” he said. “There is no permission for any company to exist forever.”

This was not the only controversial topic at the meeting.

Employees are waiting for details from the third investigation after The Guardian In August, the Israeli military was used by Azure Cloud Infrastructure Microsoft to store Palestinian phone calls as part of Israel’s invasion. Microsoft is fired five employees subsequent Protests at its headquarters In Redmond, the group’s statement said, no apartheid.

Microsoft President Brad Smith, whose office participated, made this question Thursday. He said he and Coulman met with Jewish Microsoft staff who were persecuted and threatened and saw their public information shared on the Internet.

“We cannot control what is happening outside Microsoft, but we need to understand one thing,” Smith said. “Microsoft has no place for anti -Semitism, and as a company, and as a community, we will protect this group and protect them.”

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