Microsoft Denies Rumours of 22,000 Layoffs in January 2026

Fresh rumours of large-scale layoffs at Microsoft sparked panic this week, with speculation suggesting that between 11,000 and 22,000 employees could be cut globally, particularly in divisions like Xbox, Azure cloud services, and global sales. The claims, representing 5–10% of Microsoft’s 220,000-strong workforce, quickly spread across social media, forums, and news outlets, raising concerns among employees still recovering from the company’s 2025 job cuts.

However, Microsoft swiftly dismissed the speculation. Frank X. Shaw, the company’s Chief Communications Officer, publicly denied the reports, calling them “100 percent made up / speculative / wrong.” He emphasised that the company is focused on expanding its investments in artificial intelligence, not downsizing.

The rumours originated from a TipRanks article and gained traction online, linking potential cuts to rising costs from AI infrastructure. Shaw responded directly on social media, even sarcastically replying to a post that threatened to “confirm layoffs in a few weeks” with, “I eagerly await.”

Concerns were heightened because Microsoft had already conducted multiple rounds of layoffs in 2025, eliminating over 15,000 jobs, including 9,000 positions in July that impacted gaming studios and projects. Xbox head Phil Spencer had described those cuts as necessary for focus and agility.

Despite workforce reductions last year, Microsoft’s market valuation surpassed $4 trillion in 2025. The company is now preparing to enforce a stricter return-to-office policy, requiring employees near offices to work on-site at least three days a week starting February 23, 2026.