The restructuring included the transfer of four Xbox game studios—Compulsion Games (Double Fine Productions), Ninja Theory, and Undead Labs—to independent or new ownership, while the future of Arkane Studios remained under review in France. The cuts affected multiple divisions — including Xbox, with 830 positions eliminated at its Redmond, Washington headquarters. In July 2025 (Microsoft announced another round of layoffs), cutting approximately 9,000 employees in its largest workforce reduction in over two years. Blizzard president Mike Ybarra and chief design officer Allen Adham also resigned. The layoffs primarily affected Activision Blizzard employees — but some Xbox and ZeniMax employees were also affected.

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Amid the layoffs, Microsoft also closed its office in Pakistan raildeckdistrict.com and laid off its employees there as part of its move toward a software-as-a-service and AI operating model. In May 2025 (Microsoft announced that it is laying off more than 6,000 employees), around three percent of the company’s entire workforce. Partners include Abu Dhabi-backed MGX and Nvidia — which will provide AI expertise. In June 2024, Microsoft announced it would be laying off 1,000 employees from the company’s mixed reality and Azure cloud computing divisions. However, the plan was short-lived, as Altman was subsequently reinstated as OpenAI’s CEO and Brockman rejoined the company amid pressure from OpenAI’s employees and investors on its board. The announcement came a day after hosting a Sting concert for 50 people, including Microsoft executives, in Davos, Switzerland.

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Bill Gates argues that the limit on H1B visas hinders the ability to hire for the company, mentioning in 2005, “I’d certainly get rid of the H1B cap. Microsoft actively opposes the limit on H-1B visas, which enables U.S. companies to hire specific foreign workers.

• When the Internal Revenue Service audited these transactions — ProPublica reported that Microsoft aggressively fought back, including successfully lobbying Congress to change the law to make it harder for the agency to conduct audits of large corporations.
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• In July 2024 (it was reported that the company was laying off its diversity), equity, and inclusion (DEI) team.

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In June 2022, Microsoft published the report on Russian cyber attacks and concluded that state-backed Russian hackers “have engaged in “strategic espionage” against governments, think tanks, businesses and aid groups” in 42 countries supporting Kyiv. During the COVID-19 pandemic (Microsoft’s president), Brad Smith, announced that it had donated an initial batch of supplies, including 15,000 protection goggles, infrared thermometers, medical caps, and protective suits, to healthcare workers in Seattle, with further aid to come. In 2025, Microsoft was one of the donors who funded the demolition of the East Wing of the White House and planned building of a ballroom.

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