Microsoft CEO Satya Nadella has admitted the company must work to rebuild employee trust amid recent layoffs and a new return-to-office (RTO) mandate. His comments came during an internal staff meeting on Thursday, where concerns about workplace culture and morale were openly raised.
According to an audio recording obtained by CNBC, Nadella directly addressed an employee’s question about a perceived lack of empathy from leadership. “I deeply appreciate the question and the sentiment behind it,” he said. “I take it as feedback for myself and the entire leadership team, because at the end of the day, we can do better—and we will do better.”
The discussion followed Microsoft’s announcement that employees living near its Redmond, Washington headquarters will be required to work from the office at least three days a week starting February next year. The mandate comes on the heels of significant workforce reductions: in July, Microsoft laid off 9,000 employees after smaller job cuts earlier in the year. Together, the layoffs and the RTO policy have fueled unease within the company, with workers questioning transparency, autonomy, and leadership empathy.
Amy Coleman, Microsoft’s head of human resources, acknowledged the mixed reactions to the new office requirement. While some employees view it as a loss of flexibility, others had already adjusted to a hybrid model. Internal data shows Seattle-area workers currently average 2.4 days in the office each week.
Nadella noted that while remote work has clear benefits, it also creates challenges, particularly for younger employees and new hires. A lack of in-person interaction, he warned, risks weakening mentorship and development opportunities. “Management is mostly remote, but the interns are all in one location,” he said. “That breaks a social contract.”
Microsoft had been slower than some of its peers in implementing an RTO mandate, but the move now places it closer in line with companies like Amazon, which required employees to return five days a week earlier this year.
