Microsoft Lays Off 22,000 Employees in 2026? Company Responds

Speculation about a potential new round of large-scale layoffs at Microsoft sparked widespread online discussion this week after a report suggested the tech giant could reduce its workforce significantly in January 2026. The claims quickly circulated on social media, raising concerns among employees and industry observers. Microsoft, however, has publicly rejected the report, with a senior executive labeling it “completely inaccurate.”

The rumors originated from a TipRanks report claiming Microsoft might lay off between 11,000 and 22,000 employees, potentially affecting teams linked to Azure cloud services, Xbox, and global sales. The report cited rising costs from the company’s aggressive artificial intelligence investments as a possible reason for the cuts. The story gained traction on platforms like X and Bluesky, fueled by memories of Microsoft’s recent restructuring moves.

Industry voices were quick to challenge the report. Jez Corden, editor at Windows Central, pointed out inaccuracies, particularly regarding Xbox-related job losses. The most direct rebuttal came from Microsoft itself. Frank X. Shaw, the company’s chief communications officer, addressed the speculation on social media, calling the report “100 percent made up / speculative / wrong.” He added in follow-up posts that he “eagerly awaits” any news of layoffs, which, according to him, do not exist.

The reaction comes amid a period of recent workforce adjustments. In July 2025, Microsoft cut around 9,000 jobs as part of a restructuring effort, with Xbox chief Phil Spencer describing the move as “necessary” to improve the company’s long-term strategy. That restructuring also led to the cancellation of multiple game projects and studio closures.

Despite these changes, Microsoft’s financial position remains strong, briefly surpassing a $4 trillion market capitalization in July 2025. For now, the claims of mass layoffs in 2026 appear unsubstantiated, but the episode underscores how quickly unverified reports can spread in the tech industry.