Microsoft CEO’s Pay Rises 63% To $79m, Despite Devastating Year For Layoffs

Microsoft CEO Satya Nadella’s pay has surged by 63%, reaching $79.1 million (£60.9m) for the financial year, despite a challenging period marked by significant layoffs. Announced in Microsoft’s latest annual report, Nadella’s compensation increase combines cash and stock and reflects the company’s overall strong financial performance, although it comes during a tumultuous time for many employees.

In 2024, Microsoft executed two rounds of mass layoffs, letting go of 1,900 employees in January, followed by another 650 in its Xbox division in September. Additionally, in June, the company closed three Bethesda studios – Arkane Austin, the externalized Tango Gameworks, and Alpha Dog – due to limited growth in the gaming console market, according to Xbox head Phil Spencer.

Despite these setbacks, Microsoft has maintained strong stock performance, pushing its market value past $3 trillion as it capitalizes on artificial intelligence innovations and cloud computing expansion. In his statement, Nadella emphasized Microsoft’s efforts to enhance gaming access and content, notably through its $68.7 billion acquisition of Activision Blizzard King, completed in October 2023. This acquisition adds renowned franchises like Candy Crush, Diablo, Halo, Warcraft, Elder Scrolls, and Gears of War, all contributing to over $1 billion in lifetime revenue each.

Nadella also highlighted cross-platform expansion, including recent releases on the Nintendo Switch and Sony PlayStation and the forthcoming launch of Indiana Jones and the Great Circle, arriving on PC and Xbox in December, and on PlayStation in early 2025. This cross-platform strategy is expected to continue, expanding Microsoft’s gaming ecosystem and accessibility.

Microsoft’s contrasting financial success and workforce reductions underscore the growing pressures in technology and gaming sectors, balancing profitability with employee retention and innovation amidst economic challenges.