Speculation about another round of large-scale layoffs at Microsoft set off intense discussions online this week after a report suggested the tech giant was preparing significant job cuts in January 2026. The claims spread rapidly across social media, fuelling anxiety among employees and industry watchers.
However, Microsoft has publicly rejected those claims, with a senior executive calling the report completely inaccurate.
The rumours stemmed from a report by TipRanks, which claimed Microsoft was weighing layoffs ranging from 11,000 to as many as 22,000 employees. The report alleged that teams linked to Azure cloud services, Xbox, and global sales could be affected, attributing the supposed cuts to mounting costs tied to the company’s aggressive investments in artificial intelligence. As the claims circulated on platforms such as X and Bluesky, they quickly gained traction, amplified by memories of Microsoft’s recent restructuring exercises.
Not everyone accepted the report at face value. Windows Central editor Jez Corden publicly challenged the claims early on, saying the information, particularly around Xbox-related job losses, was incorrect. The strongest rebuttal, however, came from within Microsoft itself.
Frank X. Shaw, Microsoft’s chief communications officer of Microsoft, addressed the speculation directly on social media. Calling the report baseless, Shaw said it was “100 percent made up / speculative / wrong.”
In follow-up posts responding to fresh rumours, he added that he “eagerly awaits” news of layoffs that, according to him, do not exist. While some users online remained sceptical, Shaw stood by his position. Beyond these comments, Microsoft has not issued a broader, formal statement addressing the claims.
The heightened reaction is understandable given Microsoft’s recent track record. In early July 2025, the company did cut around 9,000 jobs as part of a restructuring effort. At the time, Xbox chief Phil Spencer described those layoffs as “necessary” for the company’s long-term strategy, saying the move was intended to improve agility and overall effectiveness. That restructuring led to the cancellation of multiple game projects and the shutdown of some studios, making any new talk of job cuts especially unsettling.
Despite these workforce changes, Microsoft’s financial position has remained robust. The company briefly crossed a market capitalisation of $4 trillion in late July 2025, underscoring its strength even as it reshapes parts of its organisation.
For now, based on Microsoft’s public response, the latest claims of mass layoffs in 2026 appear to lack substance. The episode, however, highlights how quickly unverified reports can spread, particularly in a climate shaped by recent job cuts and ongoing transformation in the global tech industry.