Microsoft CEO Nadella says company must rebuild trust with employees

Microsoft CEO Satya Nadella said to employees at a meeting on Thursday that the company had a few rounds of dismissal and announced a compulsory partial return to face -to -face jobs.

At the meeting held online, a working executives asked the executives to talk about a lack of empathy perceived in the company’s culture late, and Microsoft’s steps to rebuild the labor force.

In the sound obtained by CNBC, Nadella said, “I deeply appreciate this, the question and the emotions behind it.” He said. “I get this as a feedback for myself and everyone in the leadership team, because I think we can do better at the end of the day and we will do better.”

Nadella’s comments come after smaller discounts in previous months after Microsoft reduced 9,000 jobs in July. On Tuesday, Microsoft, Washington, Redmond, the workers living near the center of Redmond, starting from February to the office for three days a week and said they should make a wider presentation.

Amy Coleman, Human Resources Chief of Microsoft, said at a meeting on Thursday, that the reception of the return announcement was mixed and that some workers felt lost autonomy. However, Seattle and the surrounding employees have already entered an average of 2.4 times a week, he said.

Like most of the technology industry, Microsoft completely moved away from distance during her pandemi, and the internal teams that were quickly adopted at that time used video and chat offers. Microsoft was slower than many peers to give the authority to return to the office. Amazon, one of Microsoft’s best competitors, recalled employees to offices for five days a week in January.

While Nadella and the executive team are criticized by some employees, Wall Street applauds the company’s growth and execution. The stock increased by almost 20% this year, performing better than the wider market, pushing Microsoft’s market value for $ 3.7 trillion. Nvidia Among the most valuable companies in the world.

In July, Microsoft reported a 24% increase in net income. The gross margin of the company was below 69% at the end of 2023 compared to 71%. It quickly builds and rents data center infrastructure to meet the demand for artificial intelligence.

Nadella said that with remote work at the meeting, new employees and those who are early in their careers did not always feel an apprenticeship or mentor.

“The administration is mostly far away, but all trainees, you know, somewhere.” He said. He continued: “And these are just things that will break a social contract.”

Microsoft did not make a comment immediately.

Even with Microsoft’s rapid expansion, Nadella said the company felt pressure. It is a widespread theme in the software industry because concerns about the effect of artificial intelligence and the potential of automating its work.

“We have a very strict job ahead of us, and this difficult renewal process is essentially what we need to do.” He said. “You must be harsh in terms of intellectual honesty about what really should be.”

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

Nadella, “Some of the biggest enterprises we do, may not be relevant to the future.” He said. “Some of the margins we love today may not be there tomorrow, and that means that you should be far ahead of those who go, right?”

Nadella said that Microsoft, who celebrated its 50th anniversary in April, will maintain its basic values ​​as she confronted market realities.

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

This was not the only controversial issue in the meeting.

Employees are waiting for the details of a third -party investigation. Guardian In August, Israel’s army used Microsoft’s Azure Cloud infrastructure to hide Palestinians’ phone calls as part of Israel’s Gaza occupation. According to Azure No Group for Apartheid, Microsoft fired five employees after protests in the center of Redmond.

Microsoft President Brad Smith, who entered the protesters office, discussed the issue on Thursday. He said that he and Coleman came together with Jewish Microsoft employees who saw that he was shared online and shared online.

“We cannot control what is happening except Microsoft, but we must be clear about something,” Smith said. He said. “There is no room for anti -Semitism in Microsoft, and as a company and a community, we will protect this group and we will protect them from it.”

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