Microsoft Denies 22,000 Employees Layoff Rumours Amid Online Speculation

Microsoft has formally denied reports alleging that it is preparing to cut as many as 22,000 jobs in January 2026.  

The rumours surfaced online, prompting concerns among employees and industry watchers. However, the company's spokesperson firmly dismissed the news, categorising it as incorrect and speculative. 

Company Reaction to Layoff Rumours 

The speculation began following a post on an anonymous job discussion forum that suggested Microsoft planned a 5% to 10% reduction in its workforce.  

The unverified post mentioned that the layoffs would take place in the third week of January 2026 and would involve departments like gaming, Azure, and sales.  

Microsoft’s Chief Communications Officer, Frank Shaw, publicly rejected the claims through a post on social media platform X, calling them “100% made up / speculative / wrong.” 

Background of Workforce Changes at Microsoft 

While the latest claims have been denied, Microsoft did carry out significant workforce adjustments in recent months.  

In 2025, the company had reduced over 15,000 job roles, including a layoff round in July that impacted around 9,000 employees.  

These layoffs were part of wider structural changes, including closures of selected gaming studios and cancellation of gaming projects.  

Partnerships and investments have continued in parallel, such as Microsoft’s announcement in December 2025 of a ₹1,45,000 crore ($17.5 billion) investment in India for artificial intelligence initiatives. 

Read More: India’s Tech Hiring Drops 24% at Start of 2026: Xpheno! 

Internal Culture and Cost Management Focus 

CEO Satya Nadella has previously pointed out that Microsoft’s extensive size poses operational challenges. Emphasis has been placed on raising profitability, especially within the Xbox division.  

This business focus has contributed to a workplace environment where layoff speculation can quickly spread, particularly when combined with reports of cost optimisation and management restructuring. 

Conclusion 

Microsoft has officially denied reports of 22,000 job cuts circulating online. Despite the workforce changes in 2025, the company maintains that no major layoffs are currently being planned or prepared as rumoured for January 2026. 

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