Is Microsoft Planning Large-Scale Layoffs This Month? Here’s What The Company Said

Microsoft has moved quickly to shut down reports suggesting it is planning a large round of job cuts in January. The company has denied claims that thousands of employees could be laid off across key teams, calling the reports inaccurate and speculative. Also Read: Elon Musk Takes A Swipe At Google After Confusing Search Result Goes Viral

Microsoft Responds to Layoff Claims

The rumours gained traction after online posts and reports claimed that Microsoft could cut anywhere between 11,000 and 22,000 jobs this month. The rumours suggested that job cuts could affect teams working on cloud services, gaming, and sales. As these claims started circulating more widely, Microsoft stepped in to address them directly. Also Read: Want Custom Stickers? Here’s How To Create AI Stickers On WhatsApp: Quick Steps

Frank Shaw, Microsoft’s Chief Communications Officer, publicly dismissed the reports, calling them “100 percent made up, speculative, and wrong.” His response was shared on social media after the claims began circulating more widely. While some early reports focused specifically on Xbox-related layoffs, Shaw’s statement appeared to reject the broader narrative altogether. Also Read: ChatGPT Tips: Mistakes Most New Users Don’t Realise

Why the Rumours Took Hold

The concern around January layoffs did not come out of nowhere. Microsoft has carried out several rounds of job cuts over the past year and a half, reducing its workforce by more than 15,000 employees during 2025. The most recent cuts took place in July, when thousands of roles were eliminated and some internal projects were shut down.

January became a focus for these rumours partly because Microsoft has made workforce changes early in the year in the past. Anonymous posts on professional forums added to the speculation, with some users claiming that middle management and older teams could be impacted, while roles linked to AI would be left untouched.

AI Spending Adds to Concern

Another factor behind the rumours is Microsoft’s growing push into artificial intelligence. The company has set aside around $80 billion for AI infrastructure, which is a big jump compared to previous years. This has naturally raised questions about how Microsoft plans to manage costs while continuing to spend heavily across its different businesses.

CEO Satya Nadella has previously spoken about the challenges of managing a company at Microsoft’s scale, which has only added to employee uncertainty. However, none of this confirms that a large round of layoffs is imminent.

What Employees Know Right Now

At this point, Microsoft has clearly stated that it is not preparing for massive layoffs in January. While internal changes and restructuring are always possible at a company of this size, there is no evidence to support claims of an imminent, large-scale job cut this month.