Over 2,000 people were laid off from Microsft in 2024, losing their jobs and livelihoods.
At the same time, Microsoft CEO Satya Nadella experienced a massive pay increase — despite the 57-year-old businessman having previously stated that he wanted his pay to be cut and the money to be used for other purposes within Microsoft.
Nadella’s compensation surged 63% to $79.1 million for the financial year ending on June 30. He received a $2.5 million salary, $71.2 million of stock awards, a $5.2 million cash incentive, and $170,000 in other compensation, per a proxy filing, according to Business Insider.
Nadella was paid a total of $48.5 million in the previous financial year.
His increase in salary came after the trillion-dollar tech company laid off around 650 workers in its gaming division in September 2024.
It had previously laid off 1,900 Activision Blizzard and Xbox employees following the closure of several game studios.
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Xbox chief Phil Spencer announced the layoffs to employees in an internal memo, per a report by The Verge.
“For the past year, our goal has been to minimize disruption while welcoming new teams and enabling them to do their best work,” Spencer said in his email to staff members obtained by Variety.
“As part of aligning our post-acquisition team structure and managing our business, we have made the decision to eliminate approximately 650 roles across Microsoft Gaming — mostly corporate and supporting functions — to organize our business for long-term success.”
Employees were told they’d receive an exit package that included severance, extended healthcare, and outplacement services. Employees outside of the United States would receive different packages based on their locations.
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At first, Nadella had been in line to receive a $10.7 million cash incentive but asked the board for less following several high-profile cybersecurity breaches.
The U.S. Department of Homeland Security published a report in April 2024 that followed an independent review of China’s breach of U.S. government officials’ email accounts. Microsoft first disclosed that incident in July 2023.
In January 2024, Microsoft admitted that Russian intelligence had accessed some of the company’s top executives’ email accounts. In response, the company said it would revamp its practices to address shortcomings highlighted in the government report, which said “customers would benefit from its CEO and board of directors directly focusing on the company’s security culture.”
To combat the breaches, Nadella claimed he would take a pay reduction to address the security issues. Clearly, that did not happen.
In the past, Nadella has been praised for being one of the best CEOs of such a successful company. In 2023, CNN awarded Nadella as “Business CEO of the Year,” claiming that the business maneuvers he’s done for Microsoft have been impressive and profitable for not only them but the world of tech business.
Still, it’s hard to celebrate a million-dollar CEO of a trillion-dollar company when 2,550 of its employees are now jobless and likely struggling financially, as is the case for many laid-off workers.
According to available dataa significant portion of laid-off employees, often cited as around 70-75%, experience financial struggles following a job loss. They have difficulty covering their bills and meeting basic expenses due to the sudden loss of income, issues Nadella certainly won’t experience any time soon.
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Nia Tipton is a Chicago-based entertainment, news, and lifestyle writer whose work delves into modern-day issues and experiences.
