Rumours: Microsoft to Lay Off 12,500-25,000 Workers Soon (Tentatively Wednesday, 15 Days From Now)
The people who post in teamblind.com typically have reliable information about Microsoft layoffs. That's based on the past (track record). This was posted last week:
Here are some updates. Creating a thread in tech channel and copy-pasting from Microsoft channel since these tend to be harder for HR to flag. Goal here is to give people some heads up on what to expect and not fear mongering.- Layoffs are coming third full week of Jan. Likely 21st but these things can move around a bit based on last minute developments. So far it looks like it will all happen in Jan, unlike last year where they decided to split it.
- It will be a sizable one. Satya and Amy want to cut 5-10% of the company. A little early to confirm but so far it looks like 5-10% will become a yearly undertaking into 2027.
- Lots of org flattening (span of control changes) coming in 2026. They want to reduce the number of middle managers and increase IC ratios.
- They will message it as changes needed to become more nimble and move like a start-up. All lipstick on the pig. Real reason is all short term profit maximizing decisions are catching up. CSAT scores are dropping across the board. AI infusion in our products are not well received by users. Real AI revenue is just not there. (People with access to usage telemetry, especially repeat usage - please share, if not too risky)
- Leadership is worried about bad morale across the company but there is very little they can do to address it. They hope to slow layoffs in mid-late 2027 and hope morale improves.
- It’s an employers market so don’t expect a lot of SSAs or high flexibility in negotiating RSU for new hires or those hitting cliff
- Best thing you can do in current environment is save aggressively for a rainy day (no pun intended) and more importantly invest in yourself. Keep learning and up-skilling. Apply for roles even if it’s just to polish your interview skills. Reach out to your network and renew old connections (refresh that TTL)
- Hate to say it but they will disproportionately target employees over 40. They will find some legal cover or excuse for this.
- You cannot control what happens to you but you can be mentally and financially prepared for it.
Wish you all the best. Hope everyone has a very blessed 2026.
It says "Satya and Amy want to cut 5-10% of the company" and hours ago we saw a notorious slopfarm parroting the lie about only 15,000 Microsoft layoffs last year (it was over 30,000). To quote: "Microsoft is reportedly entering a decisive phase of workforce restructuring, with industry insiders warning of potential mass layoffs throughout January 2026. Following a year that saw over 15,000 employees lose their jobs across multiple waves, rumours of further job cuts suggest a multi-year strategy to flatten corporate hierarchies. Environmental signals, including a rigid Return-to-Office (RTO) mandate effective February 2026, have led teams in Gaming, Azure, and Sales to expect a major personnel reset."
This seems to be LLM slop. Such slop can help distract from reliable information and instead push falsehoods like the false scale of layoffs in 2025 (it was not 15,000 staff). Similarly, judging by The Register MS this morning, slopfarms shift attention from Bill Epsteingate's ties to trafficking of young women. The Register MS now participates in this. What does that say about The Register MS and its attitude towards women?
Anyway, the above thread says: "Layoffs are coming third full week of Jan. Likely 21st but these things can move around a bit based on last minute developments."
We saw estimates that said week starting 19th... only days beforehand. Those are not contradictions (Monday onwards versus Wednesday, the latter seems to be more precise).
Hours ago we published: Microsoft Layoffs in January 2026. █