Microsoft Executive Denies Layoff Rumors: “Completely False”

If you’ve been keeping an eye on social media platforms like Bluesky or X, you might have come across some buzz about Microsoft potentially planning to lay off tens of thousands of employees due to the escalating costs associated with artificial intelligence. While these claims have been circulating, Microsoft’s chief communications officer has stepped in to deny them. A report from an outlet suggested that Microsoft was “considering massive layoffs” this month, with estimates ranging from 11,000 to 22,000 job cuts affecting the Azure Cloud, Xbox, and global sales teams. After this news made the rounds, Windows Central editor Jez Corden asserted that the information regarding Xbox was “false.” Shortly thereafter, Microsoft CCO Frank X. Shaw, who has been with the company for nearly 17 years, also dismissed the report, labeling it as “100 percent made up / speculative / wrong.”

There’s been a fair amount of skepticism surrounding both Corden and Shaw’s statements. However, Shaw has engaged with many of the comments, expressing that he, too, is “eagerly awaiting” the news he claims is inaccurate. It’s important to note that while layoffs at Microsoft could happen in the future, the company has already undergone several rounds of job cuts recently. In early July 2025, Microsoft laid off around 9,000 employees, with Xbox head Phil Spencer describing the cuts as “necessary” for the company’s long-term success. These layoffs led to the cancellation of several games and the closure of studios, as Spencer mentioned the need to “increase agility and effectiveness.” Despite these challenges, Microsoft still achieved a valuation of $4 trillion by late July 2025.