Breaking News

Microsoft rejects claims of 22,000 layoffs

Microsoft has firmly denied reports suggesting that it is planning to cut up to 22,000 jobs in the near term. The clarification came after widespread speculation circulated on social media and online forums earlier this week, raising concerns among employees and industry watchers.

Frank Shaw, Microsoft’s Chief Communications Officer, publicly dismissed the claims, calling both the scale and timing of the reported layoffs “entirely untrue.” Responding directly on X (formerly Twitter), Shaw said the figures being shared were “100 percent made up, speculative, and wrong,” pushing back against what he described as unfounded rumours.

The speculation originated from a report by investment research platform TipRanks, which claimed Microsoft was considering workforce reductions of between 5% and 10%. According to the report, the alleged cuts would have affected middle management, global sales teams, and parts of the Xbox gaming division, purportedly to offset the company’s heavy investments in artificial intelligence infrastructure.

Shaw also responded to users who suggested the layoffs would be confirmed in the coming weeks, replying with a confident “I eagerly await,” reinforcing Microsoft’s position that no such large-scale action is underway.

Industry Response and Background

Several independent technology analysts and publications had already questioned the credibility of the reports before Shaw’s comments. Editors at Windows Central, for instance, noted that claims about deep job cuts within the Xbox business lacked supporting evidence.

Concerns about potential layoffs have been amplified by Microsoft’s workforce actions over the past year. In 2025, the company eliminated roughly 15,000 positions across multiple rounds of restructuring. The largest reduction took place in July 2025, when around 9,000 employees were laid off as Microsoft shut down several internal gaming studios and discontinued unannounced projects.

Microsoft CEO Satya Nadella has previously acknowledged that the company’s size can pose challenges in a rapidly evolving technology landscape. Combined with Microsoft’s planned investment of nearly USD 80 billion in AI data centres and advanced chips, these comments have contributed to heightened speculation around staffing priorities.

Financial Position and Policy Updates

Despite the rumours, Microsoft remains financially strong. The company reached a market valuation of approximately USD 4 trillion in mid-2025 and continues to post robust growth across its cloud computing and AI businesses.

While Microsoft typically reviews workforce needs at the beginning of the year, it maintains that claims of a 22,000-employee layoff are baseless. The company has not issued a formal press release on the matter, instead relying on executive communication to address the misinformation.

Separately, Microsoft has confirmed updates to its workplace policy. From 23 February 2026, employees living within 50 miles of a company hub will be required to work on-site at least three days a week.