Microsoft denies reports of 22,000 job cuts

Microsoft has issued a firm denial regarding reports that the company is preparing to lay off as many as 22,000 employees this month. Chief Communications Officer Frank Shaw addressed the claims directly on social media, dismissing the figures and the timeline as entirely fabricated.

The rumors gained momentum early this week following a report by the investment site TipRanks, which suggested Microsoft was considering cutting between 5% and 10% of its global workforce. The claims alleged that these reductions would primarily target middle management, global sales, and the Xbox gaming division to offset the massive capital expenditures required for artificial intelligence (AI) infrastructure.

Executive response and clarification

Responding to the speculation on X (formerly Twitter), Frank Shaw described the reports as "100 percent made up / speculative / wrong." When users on the platform suggested the layoffs would eventually be confirmed in the coming weeks, Shaw replied, "I eagerly await," signaling confidence that the rumored mass termination event is not occurring.

Independent industry observers, including editors at Windows Central, had also challenged the rumors prior to Shaw's statement, specifically noting that reports of deep cuts within the Xbox division appeared unfounded.

Context of workforce anxiety

The sensitivity surrounding workforce stability follows a series of actual staff reductions in 2025. Over the past year, Microsoft eliminated approximately 15,000 roles in multiple waves. The most significant of these occurred in July 2025, when the company let go of 9,000 employees while closing several internal gaming studios and canceling unannounced projects.

CEO Satya Nadella has previously acknowledged that Microsoft’s current scale can be a "massive disadvantage" in a fast-moving market. This sentiment, combined with the company’s USD 80 billion commitment to AI data centers and chips, has created a climate where speculation about "payroll-to-asset" shifts finds a receptive audience.

Current financial standing

Despite the rumors, Microsoft’s financial performance remains at record levels. The company achieved a market valuation of USD 4 trillion in late July 2025 and continues to report strong growth in its cloud and AI segments.

While Microsoft historically evaluates its staffing levels at the start of the calendar year, the company insists that the specific claims of a 22,000-person "purge" are baseless. Beyond the executive comments on social media, Microsoft has not issued a formal, company-wide press release, relying instead on its communications leadership to quell the viral misinformation.

In a related operational update, Microsoft recently confirmed a stricter return-to-office policy. Starting 23 February 2026, eligible employees living within 50 miles of a regional hub must work on-site at least three days per week.