Criticism of Microsoft has followed various aspects of its products and business practices, including surveillance of employees, “Velvet Sweatshop” practices, tax manipulation, and antitrust violations. Amy Coleman, Microsoft’s executive vice president and chief people officer, said the layoffs were not the result of employees being replaced by AI, but acknowledged that AI is changing how work is done. 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 June 2024, Microsoft announced it would be laying off 1,000 employees from the company’s mixed reality and Azure cloud computing divisions. On October 7, Microsoft acquired Ally.io, a software service that measures companies’ progress against OKRs, planning to incorporate it into its Viva family of employee experience products. The public cloud computing platform provides access to quantum software and quantum hardware including trapped ion, neutral atom, and superconducting systems.
The company is often referred to as a “Velvet Sweatshop”, a term which originated in a 1989 Seattle Times article, and later became used to describe the company by some of Microsoft’s own employees. Historically, Very Well Microsoft has also been accused of overworking employees, in many cases, leading to burnout within just a few years of joining the company. The company has also been criticized for the use of permatemp employees (employees employed for years as “temporary”, and therefore without medical benefits), the use of forced retention tactics, which means that employees would be sued if they tried to leave.
The company is run by a board of directors made up of mostly company outsiders, as is customary for publicly traded companies. Microsoft is ranked No. 14 in the 2022 Fortune 500 rankings of the largest United States corporations by total revenue; and it was the world’s largest software maker by revenue in 2022 according to Forbes Global 2000. Microsoft also confirmed that its Maia 200 AI accelerator, first revealed in January 2026, had entered production deployment in data centers in Iowa and Arizona, powering workloads including Microsoft 365 Copilot and OpenAI’s GPT-5.2 models. At Microsoft Build 2026 in June 2026, Microsoft announced the preview availability of Azure Cobalt 200 virtual machines, its second-generation Arm-based custom CPU, offering up to 135% better performance for cloud database workloads and 50% overall CPU performance improvement over the previous generation Cobalt 100.

• 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).
• 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.
• In December 2018, Microsoft announced Project Mu, an open source release of the Unified Extensible Firmware Interface (UEFI) core used in Microsoft Surface and Hyper-V products.
• In June 2022, Microsoft published the report on Russian cyber attacks and concluded that state-backed Russian hackers “have engaged in “strategic espionage” against governments, think tanks, businesses and aid groups” in 42 countries supporting Kyiv.
• Microsoft is one of only two U.S.-based companies that have a prime credit rating of AAA.
• The European Commission issued a statement of objections, alleging Microsoft’s practice since 2019 gave Teams an unfair market advantage and limited interoperability with competing software.

present: Acquisitions, Xbox Series X/S, and Windows 11

December also saw the company discontinue the Microsoft Edge Legacy browser project in favor of the “New Edge” browser project, featuring a Chromium based backend. In the same month, Microsoft announced the open source implementation of Windows Forms and the Windows Presentation Foundation (WPF) which will allow for further movement of the company toward the transparent release of key frameworks used in developing Windows desktop applications and software. In December 2018, Microsoft announced Project Mu, an open source release of the Unified Extensible Firmware Interface (UEFI) core used in Microsoft Surface and Hyper-V products. Intune for Education is a new cloud-based application and device management service for the education sector. Since Nadella became CEO, the company has changed focus towards cloud computing.

2014: Windows 8/8.1, Xbox One, Outlook.com, and Surface devices

The layoffs primarily affected Activision Blizzard employees, but some Xbox and ZeniMax employees were also affected. In November 2018, the company won a $480 million military contract with the U.S. government to bring augmented reality (AR) headset technology into the weapon repertoires of American soldiers. Consequently, in February 2011 Microsoft released a corporate bond amounting to $2.25 billion with relatively low borrowing rates compared to government bonds.

present: Acquisitions, Xbox Series X/S, and Windows 11

During the summer of 2015 the company lost $7.6 billion related to its mobile-phone business, firing 7,800 employees. Following the release of Windows Phone, Microsoft undertook a gradual rebranding of its product range throughout 2011 and 2012, with the corporation’s logos, products, services, and websites adopting the principles and concepts of the Metro design language. 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. It has been criticized for monopolistic practices, and the company’s software received criticism for problems with ease of use, robustness, and security. Most notably provides the Azure cloud computing platform, Microsoft SQL Server database software, and Visual Studio.

• In the same month, Microsoft announced the open source implementation of Windows Forms and the Windows Presentation Foundation (WPF) which will allow for further movement of the company toward the transparent release of key frameworks used in developing Windows desktop applications and software.
• Criticism of Microsoft has followed various aspects of its products and business practices, including surveillance of employees, “Velvet Sweatshop” practices, tax manipulation, and antitrust violations.
• Other companies like Borland, WordPerfect, Novell, IBM and Lotus, being much slower to adapt to the new situation, would give Microsoft market dominance.
• A Big Tech company, Microsoft is the largest software company by revenue, one of the most valuable public companies, and one of the most valuable brands globally.
• Bill Gates claims the cap on H1B visas makes it difficult to hire employees for the company, stating “I’d certainly get rid of the H1B cap” in 2005.
• With a few exceptions of new companies, like Netscape, Microsoft was the only major and established company that acted fast enough to be a part of the World Wide Web practically from the start.

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). The acquisition positioned Microsoft to grow its presence in the market of providing online education to large numbers of people. In February 2019, hundreds of Microsoft employees protested what they termed war profiteering by the company from its $480 million contract to develop virtual reality headsets for the United States Army.

In December 2013, the company made a statement to further emphasize that it takes its customers’ privacy and data protection very seriously, saying that “government snooping potentially now constitutes an ‘advanced persistent threat,’ alongside sophisticated malware and cyber attacks”. A Microsoft spokesperson stated that the corporation runs several programs that facilitate the sharing of such information with the U.S. government. The cuts affected multiple divisions, including Xbox, with 830 positions eliminated at its Redmond, Washington headquarters. In July 2025, Microsoft announced another round of layoffs, cutting approximately 9,000 employees in its largest workforce reduction in over two years. Blizzard president Mike Ybarra and chief design officer Allen Adham also resigned.