Microsoft has firmly denied reports claiming the company is preparing to cut tens of thousands of jobs, with a senior executive calling the speculation “100% made up” as the rumours spread rapidly across social media.
The claims originated from a report published by TipRanks, which alleged that Microsoft was considering large-scale layoffs this month. The report suggested that between 11,000 and 22,000 roles could be affected across Azure cloud operations, Xbox, and global sales teams, linking the potential cuts to rising costs tied to artificial intelligence investments.
Microsoft executive dismisses claims
As the report gained traction on platforms such as X and Bluesky, Microsoft’s leadership moved quickly to counter the narrative. Frank X. Shaw, the company’s Chief Communications Officer, publicly rejected the claims.
In a social media post, Shaw said he was “eagerly awaiting” the news he insisted did not exist, adding that the report was entirely fabricated. Shaw, who has spent nearly 17 years at Microsoft, continued to respond to users online, repeatedly maintaining that the information was inaccurate.
Xbox-focused report also challenged
Earlier, Jez Corden, editor at Windows Central, also disputed the report, stating that the claims were false, particularly with regard to Microsoft’s Xbox division.
Despite scepticism from some users, Microsoft has not issued a separate formal statement beyond Shaw’s remarks, relying instead on the executive’s public denial to counter the speculation.
Context of recent job cuts
The rumours surfaced against the backdrop of real workforce reductions at Microsoft earlier this year. In July 2025, the company laid off around 9,000 employees as part of a restructuring exercise. At the time, Xbox head Phil Spencer described the cuts as “necessary” to support long-term success, saying they were aimed at improving agility and effectiveness. Several game projects were cancelled and some studios shut down during that phase.
Strong finances amid AI push
Despite those layoffs, Microsoft’s financial position has remained robust. The tech giant touched a market valuation of nearly $4 trillion in late July 2025, highlighting the balance it is trying to strike between cost control, heavy AI infrastructure spending, and sustained growth.
While Microsoft has acknowledged that workforce adjustments are part of running a company of its scale, its leadership has pushed back strongly against suggestions of imminent, mass layoffs on the scale described in the disputed report. The episode underscores how quickly unverified claims can spread online, especially at a time when big technology firms face intense scrutiny over jobs and automation.