Microsoft Layoff Email
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In step with other tech companies, Microsoft is laying off 10,000 employees, and CEO Satya Nadella’s email is posted publicly. I’m surprised that Nadella didn’t learn more lessons from the 2014 Microsoft layoff email a NY Magazine writer called “hilariously bad.”
Nadella starts with the vague subject line, “Focusing on our short- and long-term opportunity,” and then writes two paragraphs about challenges and opportunities that lie ahead. Mercifully, he gets to the news in the first sentence of the third paragraph. This is an improvement over the 2014 memo in which former exec Stephen Elop announced layoffs in the eleventh paragraph.
In Chapter 8 of Business Communication and Character, I write extensively about the value of putting bad news up front and the lack of research support for the “indirect style”—giving explanations first and then the bad news. In this case, I’m quite sure that employees knew what was coming, so a more direct style is more appropriate.
In these sentences, Nadella puts the 10,000 in perspective, as we teach in crisis communication. However, employees will wonder whether they are affected and when they will hear the news. Based on the industry and his first paragraphs, employees working on AI likely feel safe, but a clearer timeline for those who aren’t is always a good idea.
Today, we are making changes that will result in the reduction of our overall workforce by 10,000 jobs through the end of FY23 Q3. This represents less than 5 percent of our total employee base, with some notifications happening today. It’s important to note that while we are eliminating roles in some areas, we will continue to hire in key strategic areas.
Twice, with a paragraph in between, Nadella promises transparency:
. . . we will do so in the most thoughtful and transparent way possible.
. . . we will treat our people with dignity and respect, and act transparently.
Employees might prefer actual transparency to hearing about it.
Nadella does express compassion and explain benefits, which is useful for employees, but clearly designed for public viewing. Overall, the email reads like one always intended for a public blog.
Update: A Wall Street Journal article reported a concert Microsoft sponsored at Davos with Sting performing for about 50 people the night before layoffs were announced. The author describes it as a “bad look.” We could call it “bad optics”—or just insensitive, lacking integrity and compassion.
