"Rumors have been circulating online that Microsoft is preparing to cut tens of thousands of jobs. TipRanks reported that the company is "considering massive layoffs" this month, potentially eliminating between 11,000 and 22,000 roles across the Azure Cloud, Xbox, and global sales teams. According to The Seattle Times, the claims appear to have originated on anonymous online forums like Reddit and Blind before rapidly spreading across Bluesky and X, drawing widespread attention and, in turn, swift denials from Microsoft executives."
"Microsoft's chief communications officer, Frank X. Shaw, took to X to refute the rumors, calling them " 100 percent made up/speculative/wrong." He also responded to a post suggesting the layoffs would materialize in weeks, sarcastically replying, " i eagerly await." Jez Corden, editor at Windows Central, also pushed back on claims, writing on X, " false on the Xbox side at least.""
"The company carried out significant workforce reductions in 2025, cutting more than 15,000 employees between May and September. In July alone, Microsoft laid off roughly 9,000 employees. At the time, Phil Spencer, head of Xbox, wrote in a memo to staff that the cuts were "necessary" for the company's longevity, arguing they would "increase agility and effectiveness.""
Online posts and TipRanks claimed Microsoft was considering massive layoffs of 11,000 to 22,000 roles across Azure Cloud, Xbox, and global sales. Claims originated on anonymous forums including Reddit and Blind and spread across Bluesky and X, prompting denials from Microsoft executives. Frank X. Shaw called the reports "100 percent made up/speculative/wrong," and industry reporters pushed back on Xbox-specific claims. Microsoft previously cut more than 15,000 employees in 2025, citing the need for agility. Rising AI development costs—about $88 billion spent during fiscal 2025—have driven budget restructuring and cost trimming elsewhere.
Read at Fast Company
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