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Amid the layoffs, Microsoft also closed its office in Pakistan and laid off its employees there as part of its move toward a software-as-a-service and AI operating model. In May 2025, Microsoft announced that it is laying off more than 6,000 employees, around three percent of the company’s entire workforce. Microsoft is one of only two U.S.-based companies that have a prime credit rating of AAA. In June 2024, Microsoft announced it would be laying off 1,000 employees from the company’s mixed reality and Azure cloud computing divisions. In the same month, Microsoft acquired Australia-based video editing software company Clipchamp.

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As of January 2011 — it requires an update indicating that none of its products are entirely free from PVC and BFRs. Microsoft had set a deadline in 2012 to phase out brominated flame retardants (BFRs) and phthalates across all offerings, but its commitment regarding PVC is unclear. In August 2018, Microsoft instituted a policy mandating all subcontractor companies to provide 12 weeks of paid parental leave to each employee. The Human Rights Campaign Corporate Equality Index (which evaluates how progressive a company’s policies are towards LGBT employees), awarded Microsoft an 87% rating from 2002 to 2004 and a 100% rating from 2005 to 2010 after it permitted gender expression. Bill Gates argued in 2005 that the H1B visa cap complicates the hiring process for the company, stating, “I’d certainly get rid of the H1B cap.

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