In December 2013, the company made a statement to further emphasize that it takes its customers’ privacy and data protection very seriously, saying that “government snooping potentially now constitutes an ‘advanced persistent threat,’ alongside sophisticated malware and cyber attacks”. A Microsoft spokesperson stated that the corporation runs several programs that facilitate the sharing of such information with the U.S. government. The cuts affected multiple divisions, including Xbox, with 830 positions eliminated at its Redmond, Washington headquarters. In July 2025, Microsoft announced another round of layoffs, cutting approximately 9,000 employees in its largest workforce reduction in over two years. Blizzard president Mike Ybarra and chief design officer Allen Adham also resigned.
The company is often referred to as a “Velvet Sweatshop”, a term which originated in a 1989 Seattle Times article, and later became used to describe the company by some of Microsoft’s own employees. Historically, Microsoft has also been accused of overworking employees, in many cases, leading to burnout within just a few years of joining the company. The company has also been criticized for the use of permatemp employees (employees employed for years as “temporary”, and therefore without medical benefits), the use of forced retention tactics, which means that employees would be sued if they tried to leave.
Criticism of Microsoft has followed various aspects of its products and business practices, including surveillance of employees, “Velvet Sweatshop” practices, tax manipulation, and antitrust violations. Amy Coleman, Microsoft’s executive vice president and chief people officer, said the layoffs were not the result of employees being replaced by AI, but acknowledged that AI is changing how work is done. Amid the layoffs, Microsoft also closed its office in Pakistan and laid off its employees there as part of its move toward a software-as-a-service and AI operating model. In June 2024, Microsoft announced it would be laying off 1,000 employees from the company’s mixed reality and Azure cloud computing divisions. On October 7, Microsoft acquired Ally.io, a software service that measures companies’ progress against OKRs, planning to incorporate it into its Viva family of employee experience products. The public cloud computing platform provides access to quantum software and quantum hardware including trapped ion, neutral atom, and superconducting systems.
present: Acquisitions, Xbox Series X/S, and Windows 11
Additional offices are located in Bellevue and Issaquah, Washington (90,000 employees worldwide). It is estimated to encompass over 8 million ft2 (750,000 m2) of office space and 30,000–40,000 employees. In April 2016, the company sued the U.S. government, argued that secrecy orders were preventing the company from disclosing warrants to customers in violation of the company’s and customers’ rights. Following media reports about PRISM, NSA’s massive electronic surveillance program, in May 2013, several technology companies were identified as participants, including Microsoft. Microsoft provides information about reported bugs in its software Very Well to intelligence agencies of the United States government, prior to the public release of the fix. In May 2025, Microsoft announced that it is laying off more than 6,000 employees, around three percent of the company’s entire workforce.
- The company is often referred to as a “Velvet Sweatshop”, a term which originated in a 1989 Seattle Times article, and later became used to describe the company by some of Microsoft’s own employees.
- Microsoft is an outspoken opponent of the cap on H-1B visas, which allows companies in the U.S. to employ certain foreign workers.
- The Human Rights Campaign Corporate Equality Index, a report of how progressive the organization deems company policies towards LGBT employees, rated Microsoft as 87% from 2002 to 2004 and as 100% from 2005 to 2010 after it allowed gender expression.
- On July 19, a global IT outage impacted Microsoft services, affecting businesses, airlines, and financial institutions worldwide.
- Intune for Education is a new cloud-based application and device management service for the education sector.
- On August 23, 2012, Microsoft unveiled a new corporate logo at the opening of its 23rd Microsoft store in Boston, indicating the company’s shift of focus from the classic style to the tile-centric modern interface, which it uses/will use on the Windows Phone platform, Xbox 360, Windows 8 and the upcoming Office Suites.
- Microsoft was the first company to participate in the PRISM surveillance program, according to leaked NSA documents obtained by The Guardian and The Washington Post in June 2013, and acknowledged by government officials following the leak.
2014: Windows 8/8.1, Xbox One, Outlook.com, and Surface devices
Microsoft also named Phil Spencer, head of the Xbox brand since 2014, the inaugural CEO of the newly established Microsoft Gaming division, which now houses the Xbox operations team and the three publishers in the company’s portfolio (Xbox Game Studios, ZeniMax Media, Activision Blizzard). The acquisition positioned Microsoft to grow its presence in the market of providing online education to large numbers of people. In February 2019, hundreds of Microsoft employees protested what they termed war profiteering by the company from its $480 million contract to develop virtual reality headsets for the United States Army.
1994: Windows and Office
In 2011, Greenpeace released a report rating the top ten big brands in cloud computing on the sources of electricity for their data centers. In August 2018, Microsoft implemented a policy for all companies providing subcontractors to require 12 weeks of paid parental leave to each employee. The Human Rights Campaign Corporate Equality Index, a report of how progressive the organization deems company policies towards LGBT employees, rated Microsoft as 87% from 2002 to 2004 and as 100% from 2005 to 2010 after it allowed gender expression. Bill Gates claims the cap on H1B visas makes it difficult to hire employees for the company, stating “I’d certainly get rid of the H1B cap” in 2005. Microsoft is an outspoken opponent of the cap on H-1B visas, which allows companies in the U.S. to employ certain foreign workers.
- The European Commission issued a statement of objections, alleging Microsoft’s practice since 2019 gave Teams an unfair market advantage and limited interoperability with competing software.
- Increasingly present in the hardware business following Xbox, Microsoft 2006 released the Zune series of digital media players, a successor of its previous software platform Portable Media Center.
- Microsoft is one of only two U.S.-based companies that have a prime credit rating of AAA.
- In June 2022, Microsoft published the report on Russian cyber attacks and concluded that state-backed Russian hackers “have engaged in “strategic espionage” against governments, think tanks, businesses and aid groups” in 42 countries supporting Kyiv.
- At Microsoft Build 2026 in June 2026, Microsoft announced the preview availability of Azure Cobalt 200 virtual machines, its second-generation Arm-based custom CPU, offering up to 135% better performance for cloud database workloads and 50% overall CPU performance improvement over the previous generation Cobalt 100.
- In December 2018, Microsoft announced Project Mu, an open source release of the Unified Extensible Firmware Interface (UEFI) core used in Microsoft Surface and Hyper-V products.
present: Acquisitions, Xbox Series X/S, and Windows 11
The layoffs primarily affected Activision Blizzard employees, but some Xbox and ZeniMax employees were also affected. In November 2018, the company won a $480 million military contract with the U.S. government to bring augmented reality (AR) headset technology into the weapon repertoires of American soldiers. Consequently, in February 2011 Microsoft released a corporate bond amounting to $2.25 billion with relatively low borrowing rates compared to government bonds.
On 9 March 2026, Microsoft unveiled the Copilot Cowork tool, which is based on Claude Cowork, tapping into the growing demand for autonomous agents. In March 2026, Microsoft-controlled discussion forums banned the nickname Microslop, used to express pushback against Microsoft’s Copilot-based and GenAI efforts. In June 2025, a United Nations report on corporations complicit in the Gaza genocide showed that Microsoft was one of several companies “central to Israel’s surveillance apparatus and the ongoing Gaza destruction.” In mid-2025, Microsoft’s Russian division, Microsoft Rus LLC, filed for bankruptcy after President Vladimir Putin stated that foreign services providers should be throttled in Russia to make way for domestic software. The outage was traced back to a flawed update of CrowdStrike’s cybersecurity software, which resulted in Microsoft systems crashing and causing disruptions across various sectors. On July 19, a global IT outage impacted Microsoft services, affecting businesses, airlines, and financial institutions worldwide.