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In June 2024, Microsoft announced it would be laying off 1,000 employees from the company’s mixed reality and Azure cloud computing divisions. The company became influential in the rise of personal computers through software like Windows and has since expanded into areas such as Internet services, cloud computing, artificial intelligence, video gaming, and more. Subsequently, two employees, software engineers Ibtihal Aboussad and Vaniya Agrawal, interrupted AI executive Mustafa Suleyman at a speaking event on April 4, 2025, in protest at the company’s support of Israel. The employees, part of the group No Azure for Apartheid, sought to address the company’s involvement in the Israeli government’s use of its technology. In October 2024, Microsoft fired two employees, software engineer Hossam Nasr and data scientist Abdo Mohamed, who organized an unauthorized vigil at its Redmond headquarters to honor Palestinians killed in the Gaza war. According to the complaint and media reports, Microsoft’s cloud services may have been used to store or process surveillance-related data.
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Microsoft 365 (formerly Office) includes Microsoft 365 Copilot app
On July 19, a global IT outage impacted Microsoft services, affecting businesses, airlines, and financial institutions worldwide. In July 2024, it was reported that the company was laying off its diversity, equity, and inclusion (DEI) team. On November 20, 2023, Satya Nadella announced that Sam Altman, who had been ousted as CEO of OpenAI just days earlier, and Greg Brockman, who had resigned as president, would join Microsoft to lead a new advanced AI research team. In June 2023, Microsoft released Azure Quantum Elements to run molecular simulations and calculations in computational chemistry and materials science using a combination of AI, high-performance computing and quantum computing. On January 23, 2023, Microsoft announced a new multi-year, multi-billion dollar investment deal with ChatGPT developer OpenAI. Microsoft also named Phil Spencer, head of the Xbox brand since 2014, the inaugural CEO of the newly established Microsoft Gaming division, which now houses the Xbox operations team and the three publishers in the company’s portfolio (Xbox Game Studios, ZeniMax Media, Activision Blizzard).
Microsoft entered the operating system (OS) business in 1980 with its own version of Unix, licensed from AT&T Corporation a year before, called Xenix, but it was MS-DOS that solidified the company’s dominance. In August 1977, the company formed an agreement with ASCII Magazine in Japan, resulting in its first international office of ASCII Microsoft. In 1972, they founded Traf-O-Data, which sold a rudimentary computer to track and analyze automobile traffic data. Microsoft has also been criticized for its role in providing services to Israel during the Gaza war. Its flagship hardware products are the Surface lineup of PCs and the Xbox brand of video game consoles, the latter including the Xbox network. Microsoft has been dominant in the IBM PC–compatible operating system and office software suite markets since the 1990s.
- On January 23, 2023, Microsoft announced a new multi-year, multi-billion dollar investment deal with ChatGPT developer OpenAI.
- Historically, Microsoft has also been accused of overworking employees, in many cases, leading to burnout within just a few years of joining the company.
- In April the company further expressed willingness to embrace open source initiatives by announcing Azure Sphere as its own derivative of the Linux operating system.
- On March 13, 2020, Gates announced that he is leaving the board of directors of Microsoft and Berkshire Hathaway to focus more on his philanthropic efforts.
As a result, in 2010 Microsoft revamped its aging flagship mobile operating system, Windows Mobile, replacing it with the new Windows Phone OS that was released in October that year. The European Union imposed another fine of €899 million ($1.4 billion) for Microsoft’s lack of compliance with the March 2004 judgment on February 27, 2008, saying that the company charged rivals unreasonable prices for key information about its workgroup and backoffice servers. Relatively strong sales of both products helped to produce a record profit in 2007.
Corporate identity
On 9 March 2026, Microsoft unveiled the Copilot Cowork tool, which is based on Claude Cowork, tapping into the growing demand for autonomous agents. In March 2026, Microsoft signed an energy pledge at the White House which required it to bear the cost of new electricity generation to power its data centers. In March 2026, Microsoft-controlled discussion forums banned the nickname Microslop, used to express pushback against Microsoft’s Copilot-based and GenAI efforts. On July 2, 2025, Microsoft announced it would cut nearly 4% of its workforce, around 9,000 jobs, to control costs amid heavy AI infrastructure spending, while also restructuring management and streamlining operations. The company had restructured operations in Russia after the 2022 Russian invasion of Ukraine, but those restructuring efforts had failed.
It has been criticized for monopolistic practices, and the company’s software received criticism for problems with ease of use, robustness, and security. Microsoft became the third publicly traded U.S. company to be valued at over $1 trillion in April 2019. The company also provides a range of consumer Internet services such as Bing web search, the MSN web portal, the Outlook.com (Hotmail) email service, and the Microsoft Store.
Gates retired from his role as Chief Software Architect on June 27, 2008, a decision announced in June 2006, while retaining other positions related to the company in addition to being an advisor for the company on key projects. Increasingly present in the hardware business following Xbox, Microsoft 2006 released the Zune series of digital media players, a successor of its previous software platform Portable Media Center. The company released the Xbox later that year, entering the video game console market dominated by Sony and Nintendo. Microsoft moved its headquarters from Bellevue to Redmond, Washington, on February 26, 1986, and went public with an initial public offering (IPO) at the NASDAQ exchange on March 13, with the resulting rise in stock making an estimated four 1xbet app billionaires and 12,000 millionaires from Microsoft employees.
In May 2016, the company announced it was laying off 1,850 workers, and taking an impairment and restructuring charge of $950 million. Intune for Education is a new cloud-based application and device management service for the education sector. During the summer of 2015 the company lost $7.6 billion related to its mobile-phone business, firing 7,800 employees.
In October 2021, Microsoft announced that it began rolling out end-to-end encryption (E2EE) support for Microsoft Teams calls in order to secure business communication while using video conferencing software. In September 2021, it was announced that the company had acquired TakeLessons, an online platform that connects students and tutors in numerous subjects. The increased necessity for remote work and distance education drove demand for cloud computing and grew the company’s gaming sales. On September 21, 2020, Microsoft announced its intent to acquire video game company ZeniMax Media, the parent company of Bethesda Softworks.
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