Microsoft Planning Return-to-Office Mandate: Report

Microsoft is planning to implement a stricter return-to-office mandate as quickly as subsequent 12 months, sources advised Business Insider.

For the reason that pandemic, Microsoft has had a versatile work association, permitting distant work as a lot as half of the time. Based on the BI report, Microsoft is contemplating rising the requirement for in-person work for workers based mostly in its Redmond, Washington, headquarters to a minimum of three days every week beginning in January.

Microsoft remains to be understanding the small print of the plan and intends to announce it in September, the sources stated. A Microsoft spokesperson advised BI that the corporate was contemplating revising its versatile work schedule, however had but to finalize any modifications.

Associated: Microsoft Just Became the Second Company in History to Achieve a $4 Trillion Valuation — Here’s How

A return-to-office mandate may impression tens of 1000’s of Microsoft workers. As of June 30, Microsoft employed 228,000 employees, with 125,000 positioned within the U.S.

If Microsoft implements a stricter return-to-office coverage, it will be a part of a slew of different firms which have tightened the bounds on distant work not too long ago — or eradicated it altogether.

In 2025, each AT&T and Sweetgreen revised their stances on distant work, with AT&T asking U.S. workers to work all 5 days from the workplace whereas Sweetgreen mandated 4 days. Each firms beforehand required workers to work in particular person three days every week.

In the meantime, Amazon announced a sweeping return-to-office mandate in September, requiring workers to work from the workplace 5 days every week beginning in January as an alternative of adhering to a hybrid schedule. Although the transfer met with pushback from workers — and impressed 500 workers to sign a letter in protest — Amazon persevered with the transfer.

Associated: Amazon Tells Thousands of Employees to Relocate or Resign

Based on a examine performed final 12 months by Bamboo HR, return-to-office mandates have been usually layoffs in disguise, designed to pare down a workforce with out conducting official job cuts. A couple of quarter of C-Suite executives surveyed wished to encourage “voluntary turnover” with stricter return-to-office insurance policies.

Mass Layoffs Regardless of Stellar Earnings

Microsoft not too long ago conducted mass layoffs, eliminating 9,000 roles in July, or almost 4% of its workforce. Two months earlier, in Might, Microsoft laid off over 6,000 employees, or 3% of its workforce.

On the similar time, Microsoft has reported stellar earnings, higher than analyst expectations. Final month, Microsoft announced that for the quarter ending June 30, income was up 18% from the earlier 12 months, reaching $76.4 billion, whereas internet earnings was $27.2 billion, a 24% enhance.

Associated: Microsoft’s CEO Says the Company’s Mass Layoffs, Despite Financial Success, Are ‘Weighing Heavily on Me’ in an Internal Memo

Microsoft CEO Satya Nadella defined the job cuts in a memo to staff launched on Microsoft’s company weblog final month. Nadella acknowledged the discrepancy between Microsoft’s “thriving” financials and his resolution to nonetheless lay off workers.

“That is the enigma of success in an business that has no franchise worth,” Nadella wrote, with out explaining additional.

Microsoft inventory is up over 24% year-to-date on the time of writing.

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