'We will do better.' Microsoft CEO Nadella admits company has to rebuild trust with employees

Core Viewpoint - Microsoft is facing internal challenges regarding employee relations after recent layoffs and a return-to-office mandate, while still experiencing positive market performance and growth [1][5]. Group 1: Employee Relations and Culture - Microsoft CEO Satya Nadella acknowledged the need to improve relations with employees following layoffs and a return-to-office policy [1][2]. - Employees expressed concerns about a perceived lack of empathy in the company's culture, prompting Nadella to commit to rebuilding trust [2]. - Human resources chief Amy Coleman noted mixed reactions to the return-to-office announcement, with some employees feeling a loss of autonomy [3]. Group 2: Layoffs and Return-to-Office Policy - Microsoft laid off 9,000 employees in July, following smaller reductions earlier in the year [2]. - Starting in February, employees near the Redmond headquarters will be required to work in the office three days a week, with plans for a broader rollout [2]. Group 3: Market Performance - Despite internal criticisms, Wall Street has responded positively to Microsoft's growth, with the stock rising nearly 20% this year [5]. - Microsoft's market capitalization reached $3.7 trillion, making it one of the most valuable companies globally, second only to Nvidia [5]. Group 4: Financial Performance - In July, Microsoft reported a 24% increase in net income to $27 billion, although its gross margin decreased to under 69% from 71% in late 2023 [6]. - The company is rapidly expanding its data center infrastructure to meet the growing demand for artificial intelligence [6].