As a result, the company will record an impairment and restructuring charge of approximately $950Â million, of which approximately $200Â million will relate to severance payments. In May 2016, Microsoft announced another 1,850 job cuts mostly in its Nokia mobile phone division. In July 2015, Microsoft announced another 7,800 job cuts in the next several months. In October 2014, Microsoft revealed that it was almost done with eliminating 18,000 employees, which was its largest-ever layoff sweep.
It has been criticized for its monopolistic practices, and the company’s software received criticism for problems with ease of use, robustness, and security. In April 2019, Microsoft became the third public U.S. company to be valued at over $1 trillion. Since Satya Nadella took over as CEO in 2014, the company has changed focus towards cloud computing, as well as its acquisition of LinkedIn for $26.2Â billion in 2016.
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- IBM had copyrighted the IBM PC BIOS, so other companies had to reverse engineer it for non-IBM hardware to run as IBM PC compatibles, but no such restriction applied to the operating systems.
- The company’s retail locations are part of a greater strategy to help build a connection with its consumers.
- As of January 2014, Microsoft’s market capitalization stood at $314B, making it the 8th-largest company in the world by market capitalization.
- On July 29, 2015, Windows 10 was released, with its server sibling, Windows Server 2016, released in September 2016.
- It was announced that the division would be led by Jordan Hoffman, who previously worked for Deepmind and Inflection.
- Since Satya Nadella took over as CEO in 2014, the company has changed focus towards cloud computing, as well as its acquisition of LinkedIn for $26.2Â billion in 2016.
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. Microsoft is one of only two U.S.-based companies that have a prime credit rating of AAA. 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. 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.
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In June 2024, Microsoft announced that it was building a “hyperscale data centre” in South East Leeds. Meanwhile, that month, the company announced a subscription offering of artificial intelligence for small businesses via Copilot Pro. In March 2024, Inflection AI’s cofounders Mustafa Suleyman and Karen Simonyan announced their departure from the company in order to start Microsoft AI, with Microsoft acqui-hiring nearly the entirety of its 70-person workforce. However, the plan was short-lived, as Altman was subsequently reinstated as OpenAI’s CEO and Brockman rejoined the company amid pressure from OpenAI’s employees and investors on its board. The service includes Copilot, a GPT-4 based large language model tool to query and visualize data, write code, initiate simulations, and educate researchers.
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. During the COVID-19 pandemic, Microsoft’s president, Brad Smith, announced that it had donated an initial batch of supplies, including 15,000 protection goggles, infrared thermometers, medical caps, and protective suits, to healthcare workers in Seattle, with further aid to come. The company was the official jersey sponsor of Finland’s national basketball team at EuroBasket 2015, a major sponsor of the Toyota Gazoo Racing WRT (2017–2020) and a sponsor of the Renault F1 Team (2016–2020). On August 23, 2012, Microsoft unveiled a new corporate logo at the opening of its 23rd Microsoft store in Boston, indicating the company’s shift of focus from the classic style to the tile-centric modern interface, which it uses/will use on the Windows Phone platform, Xbox 360, Windows 8 and the upcoming Office Suites.
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People who use its products and services often end up becoming dependent on them, a process known as vendor lock-in. In 2011, Greenpeace released a report rating the top ten big brands in cloud computing on the sources of electricity for their data centers. 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”. Microsoft provides information about reported bugs in its software to intelligence agencies of the United States government, prior to the public release of the fix. In May 2025, Microsoft announced that it is laying off more than 6,000 employees, around three percent of the company’s entire workforce.
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On January 18, 2022, Microsoft announced the acquisition of American video game developer and holding company Activision Blizzard in an all-cash deal worth $68.7 billion. 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 the same month, Microsoft acquired Australia-based video editing software company Clipchamp. In September 2021, it was announced that the company had acquired Takelessons, an online platform that connects students and tutors in numerous subjects.
- Among grant recipients from the Asia-Pacific region are the Sri Lankan IT company Fortude, the Thailand-based Vulcan Coalition, and the Indonesian organization Kerjabilitas.
- In October 2024, Microsoft fired two employees, software engineers Ibtihal Aboussad and Vaniya Agrawal, who organized an unauthorized vigil at its Redmond headquarters to honor Palestinians killed in the Gaza war.
- Childhood friends Bill Gates and Paul Allen sought to make a business using their skills in computer programming.
- In March the company also established guidelines that censor users of Office 365 from using profanity in private documents.
- On October 26, 2015, the company opened its retail location on Fifth Avenue in New York City.
In August 2012, the New York City Police Department announced a partnership with Microsoft for the development of the Domain Awareness System which is used for police surveillance in New York City. The Surface was unveiled on June 18, becoming the first computer in the company’s history to have its hardware made by Microsoft. Microsoft unveiled Windows 8, an operating system designed to power both personal computers and tablet computers, in Taipei in June 2011. This nonprofit organization is focused on providing support for a cloud computing initiative called Software-Defined Networking.
On June 4, 2018, Microsoft officially announced the acquisition of GitHub for $7.5Â billion, a deal that closed on October 26, 2018. The project is dubbed “Azure Government” and has ties to the Joint Enterprise Defense Infrastructure (JEDI) surveillance program. In March the company also established guidelines that censor users of Office 365 from using profanity in private documents. In March 2018, Microsoft recalled Windows 10 S to change it to a mode for the Windows operating system rather than a separate and unique operating system.
Products
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.
Frequently criticized are the ease of use, robustness, and security of the company’s software. Microsoft initially moved onto the grounds of the campus on February 26, 1986, weeks before the company went public on March 13. In January 2020, the company announced a strategy to take the company carbon negative by 2030 and to remove all carbon that it has emitted since its foundation in 1975. In February 2010, however, Microsoft took a stance against adding additional public transport and high-occupancy vehicle (HOV) lanes to the State Route 520 and its floating bridge connecting Redmond to Seattle; the company did not want to delay the construction any further. The “Connector” does not compete with the public bus system and works with it to provide a cohesive transportation network not just for its employees but also for the public. The Human Rights Campaign Corporate Equality Index, a report of how progressive the organization deems company policies towards LGBT employees, rated Microsoft as 87% from 2002 to 2004 and as 100% from 2005 to 2010 after it allowed gender expression.
The company is run by a board of directors made up of mostly company outsiders, as is customary for publicly traded companies. In mid-2025, Microsoft’s Russian division, Microsoft Rus LLC, filed for bankruptcy after President Vladimir Putin stated that foreign services providers should be throttled in Russia to make way for domestic software. On October 7, Microsoft acquired Ally.io, a software service that measures companies’ progress against OKRs.
The public cloud computing platform provides access to quantum software and quantum hardware including trapped ion, neutral atom, and superconducting systems. 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. To cope with the potential for an increase in demand for products and services, Microsoft opened a number of “holiday stores” across the U.S. to complement the increasing number of “bricks-and-mortar” Microsoft Stores that opened in 2012. 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.
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In September 2024, BlackRock and Microsoft announced a $30 billion fund, the Global AI Infrastructure Investment Partnership, to invest in AI infrastructure such as data centers and energy projects. Microsoft stated that the underlying cause had been fixed but acknowledged ongoing residual impacts on some Microsoft 365 apps and services. Despite CrowdStrike’s CEO George Kurtz clarifying that the issue was not a cyberattack, the incident had widespread consequences, leading to delays in air travel, financial transactions, and medical services globally. On July 19, 2024, a global IT outage impacted Microsoft services, affecting businesses, airlines, and financial institutions worldwide.
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. Other companies like Borland, WordPerfect, Novell, IBM and Lotus, being much slower to adapt to the new situation, would give Microsoft market dominance.
Microsoft also named Phil Spencer, head of the Xbox https://www.mrsloty.uk/ 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 plans to incorporate Ally.io into its Viva family of employee experience products. The acquisition positioned Microsoft to grow its presence in the market of providing online education to large numbers of people.