Microsoft has quashed rumours of 22,000 layoffs this month

Microsoft has quashed rumours regarding 22,000 job cuts this month. Frank Shaw, chief communications officer, Microsoft, has clarified on social media that the news of layoffs was wrong and that no official confirmation of the same can be given. The cuts were reportedly expected to affect employees in the Azure cloud services, the Xbox gaming team, as well as the global sales teams.

The company had let go about 9,000 people about six months ago with the gaming business witnessing a lot of restructuring, studio closures and project cancellations. Interestingly, these cuts happened at a time when the tech firm was posting profits. At the time, the company had claimed the cuts were a part of organisational changes that could not be avoided in a bid to ensure success in a “dynamic marketplace”.

The cuts had affected several departments and regions. Layoffs happened earlier in January of 2025 too, followed by 6000 cuts in May and then over 300 in June again as part of a restructuring exercise. The software giant had also started to outsource some functions recently in an attempt to bring down operational costs even while focusing more on investing in artificial intelligence (AI).

Recent reports suggest that the company differentiates sharply between high and average performers during appraisal cycles. Employees delivering consistent results and business impact tend to receive better increments and stock-based rewards, while others see more modest outcomes. This approach aligns with Microsoft’s focus on productivity, accountability and measurable contribution.