Microsoft Eyes Stricter Return-to-Office Policy Amid 15,000 Job Cuts

Microsoft Eyes Stricter Return-to-Office Policy Amid 15,000 Job Cuts
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Microsoft may soon tighten its hybrid work model as it reviews flexible policies following over 15,000 job cuts this year.

Microsoft is reportedly preparing to roll out a more rigid return-to-office policy for certain teams, possibly beginning early next year. This comes in the wake of significant organizational restructuring, including over 15,000 job cuts throughout 2024.

Sources familiar with the matter told Business Insider that the tech giant is discussing a plan that would require most employees to be present in the office at least three days per week. This move would represent a major shift from Microsoft’s current flexible work model, which has allowed employees to work remotely up to 50 percent of the time without requiring special approval.

The revised attendance mandate is still under discussion and not yet finalized. However, January 2025 is being considered as a potential launch date for the first phase of the rollout. Redmond, Washington — home to Microsoft’s global headquarters — is expected to be among the first locations affected. Although the company had originally considered announcing the change in September this year, no definitive timeline has been confirmed.

In a statement, a company spokesperson confirmed that Microsoft is "reviewing flexible work guidelines" but clarified that “no decision has been made yet.”

Since the pandemic began in 2020, Microsoft has embraced hybrid work, introducing a policy that formally allowed remote work for up to half the week. In practice, though, the arrangement has often been more lenient, with many teams continuing to operate almost entirely from home.

If implemented, the shift would place Microsoft in closer alignment with other major tech companies that have already tightened their remote work policies. Amazon, for example, mandated a five-day in-office schedule for several teams earlier this year. AT&T also took a hard stance last year, enforcing similar rules. Its CEO, John Stankey, reportedly told employees they should either comply with the new policy or exit the company.

This move toward stricter in-office attendance comes at a time of broader internal changes. Microsoft has undergone four rounds of layoffs in 2024 alone, the most recent of which was announced just last Wednesday. That round impacted roughly 9,000 employees, pushing the total number of job losses this year to over 15,000 — about 4 percent of Microsoft’s global workforce, which totals approximately 2,28,000 people.

In a message to staff, Microsoft CEO Satya Nadella addressed the difficult decision to reduce headcount, describing it as “one of the hardest choices the company has to make.” He acknowledged the emotional weight of letting go of “colleagues and friends with whom employees have worked closely,” and expressed sincere gratitude to those leaving the company, noting that their contributions were vital in building Microsoft’s current success.

As the company continues to adapt to a changing business landscape, the possible return-to-office shift and workforce reductions reflect Microsoft’s efforts to streamline operations and position itself for long-term stability.

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