Microsoft Corp. is bracing for another round of workforce reductions later this month, and internal anxiety is intensifying among employees over 40 amid claims that older workers could be disproportionately affected. While the company has not confirmed layoffs scheduled for January, internal chatter across verified employee forums points to job cuts potentially reaching into the tens of thousands, even as Microsoft continues to post strong profits and expand spending on artificial intelligence infrastructure.
Estimates circulating among employees suggest between 11,000 and 22,000 roles could be eliminated globally, representing roughly 5% to 10% of Microsoft's workforce of about 220,000. The timing is expected in the third week of January, with Jan. 21 cited repeatedly in anonymous posts on Blind, a forum restricted to verified corporate email accounts.
One post dated Dec. 30, 2025, struck a nerve among longer-tenured staff. "Hate to say it but they will disproportionately target employees over 40," the anonymous author wrote. "They will find some legal cover or excuse for this."
Microsoft has firmly rejected claims. Its chief communications officer Frank Shaw saidn on X, "100 percent made up / speculative / wrong."
The unease reflects broader changes underway inside Microsoft, where management has increasingly emphasized flattening organizational layers while prioritizing roles tied to artificial intelligence and cloud infrastructure. According to reporting by The HR Digest, Chief Executive Satya Nadella has previously described Microsoft's scale as a "massive disadvantage" in the AI race, arguing that speed and efficiency are critical to competing with rivals.
An internal shift toward reducing middle-management roles has heightened concern among veteran employees, many of whom occupy supervisory or legacy product positions. The Blind post said leadership intends to "reduce the number of middle managers and increase IC ratios," adding that organizational flattening could become "a yearly undertaking into 2027."
Analysts cited by TipRanks say Microsoft is reallocating capital away from payroll and toward long-term technology investments. Roles connected to AI research and core cloud services are viewed as more insulated, while "middle managers and older product teams may face a higher risk," TipRanks reported.
Adding to the pressure is a stricter return-to-office mandate set to take effect Feb. 23. Employees living within 50 miles of an office will be required to work on-site at least three days a week. Some staff believe the policy is designed to accelerate voluntary departures.
"There's a growing sense that the RTO mandate isn't about collaboration," an Azure Cloud Operations engineer told The HR Digest. "They know that if they force everyone back to the office, a certain percentage will choose to leave on their own."
The timing has frustrated many workers given Microsoft's financial position. The company reported nearly $75 billion in net income in recent quarters, while capital expenditures reached $34.9 billion in the first quarter of fiscal 2026 alone. Annual capital spending is projected to exceed $80 billion, largely directed toward data centers, AI chips and machine-learning infrastructure.
Those investments followed a turbulent 2025, when Microsoft cut more than 15,000 jobs across multiple rounds, including approximately 6,000 in May and 9,000 in July, according to TipRanks.
For employees bracing for what may come, the anonymous Blind post offered blunt advice: "You cannot control what happens to you but you can be mentally and financially prepared for it." The writer urged colleagues to save aggressively, upskill quickly and rebuild professional networks.
