Microsoft Exec Dismisses Mass Layoff Report: “100% Made Up”

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You might have seen reports online, especially on platforms like Bluesky and X, suggesting Microsoft is planning to lay off a large number of employees due to the increasing expenses of artificial intelligence. However, a spokesperson for Microsoft has denied these reports.

A recent report from TipRanks claimed Microsoft is planning significant layoffs this month, potentially impacting 11,000 to 22,000 positions across its Azure Cloud, Xbox, and sales divisions. However, Jez Corden, an editor at Windows Central, quickly stated the Xbox portion of the report was untrue. Shortly after, Frank X. Shaw, Microsoft’s Chief Communications Officer (and a 17-year company veteran, per his LinkedIn profile), also refuted the claims.

100 percent made up / speculative / wrong.

— Frank X. Shaw (@fxshaw) January 7, 2026

People are expressing doubt in the comments on both James Corden and Michael Shaw’s posts. Shaw has replied to many of these comments, stating he’s also waiting to see if the news he believes is inaccurate turns out to be true.

Just because Microsoft hasn’t announced layoffs right now doesn’t mean they won’t happen eventually. The company has already had several rounds of job cuts, and a lot of what you see online about these things is designed to get clicks rather than report facts. So, it’s important to be skeptical of what you read.

Recently, Microsoft reduced its workforce. In early July 2025, around 9,000 employees were laid off, a move Xbox leader Phil Spencer described as essential for the company’s long-term health. This led to the cancellation of some games and the closure of certain studios, as Microsoft aimed to become more flexible and efficient. Even with these changes, Microsoft’s value still reached $4 trillion by late July 2025.

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2026-01-07 23:10