Microsoft CEO Satya Nadella has acknowledged that the company needs to “do better” in rebuilding employee trust following recent layoffs and the implementation of a new return-to-office policy. His remarks were made during a virtual all-hands meeting on September 11, according to a report by CNBC. 

The tech giant recently laid off around 9,000 employees and announced that Redmond-based staff will be required to work from the office at least three days a week starting February. The move has received mixed responses from employees, Microsoft’s Chief Human Resources Officer Amy Coleman noted during the session. While some workers expressed concern about reduced autonomy, Coleman pointed out that employees in the Seattle area already average 2.4 office days per week. 

Responding to a staff question on empathy in the workplace, Nadella emphasized that leadership needs to reflect and act. “I take it as feedback for me and the leadership team, because at the end of the day, I think we can do better—and we will do better,” CNBC quoted him as saying. Nadella also highlighted the limitations of remote work, especially for mentorship and early-career learning. 

He noted that interns are often in one location while management operates remotely, creating gaps in workplace connection and culture. Looking ahead, Nadella cautioned employees about long-term business challenges. “Some of the biggest businesses we built may not be as relevant going forward,” he said. He stressed the need for renewal, warning that current margins may not sustain in the future, and urged employees to stay ahead of shifts in the industry.