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Microsoft Leaders Focus on Rebuilding Team Confidence After Layoffs

Following significant layoffs, Microsoft leaders are tasked with restoring employee confidence. The goal is to mitigate uncertainty and improve performance within the remaining workforce.

8 October 2026
Microsoft Leaders Focus on Rebuilding Team Confidence After Layoffs

Microsoft's recent global layoffs, impacting thousands of employees, have created an atmosphere of uncertainty and diminished confidence among the remaining workforce. Executive VP and Chief People Officer Amy Coleman has indicated further restructuring is anticipated, highlighting the critical role of leaders in rebuilding team trust.

This period of uncertainty can reduce productivity, as employees may divert energy towards worry rather than work. Microsoft's management is now focused on the challenge of restoring confidence within their teams. This situation is not unique to Microsoft, as many organizations face similar organizational changes.

Leaders must first manage their own responses to uncertainty. Professor Manfred Kets de Vries suggests that leaders need to maintain composure to avoid spreading panic. Self-awareness and intentional communication are key. Leaders are encouraged to process their own emotions to better support their team members in doing the same.

Rebuilding confidence involves creating a safe environment for uncertainty, where employees can voice concerns openly despite an unclear future. Leaders should also foster momentum by reminding teams of past successes, encouraging small steps, and celebrating progress. Demonstrating belief in the team through actions and challenges can be contagious and boost performance.

Original source: fastcompany.com