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 informed Enterprise Insider.

For the reason that pandemic, Microsoft has had a versatile work association, permitting distant work as a lot as half of the time. In keeping with the BI report, Microsoft is contemplating rising the requirement for in-person work for workers primarily based in its Redmond, Washington, headquarters to not less than three days per week beginning in January.

Microsoft continues to be understanding the main points of the plan and intends to announce it in September, the sources mentioned. A Microsoft spokesperson informed BI that the corporate was contemplating revising its versatile work schedule, however had but to finalize any modifications.

Associated: Microsoft Simply Turned the Second Firm in Historical past to Obtain a $4 Trillion Valuation — Here is How

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

If Microsoft implements a stricter return-to-office coverage, it will be part of a slew of different corporations which have tightened the bounds on distant work just lately — or eradicated it altogether.

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

In the meantime, Amazon introduced a sweeping return-to-office mandate in September, requiring workers to work from the workplace 5 days per week beginning in January as a substitute of adhering to a hybrid schedule. Although the transfer met with pushback from employees — and impressed 500 workers to signal a letter in protest — Amazon endured with the transfer.

Associated: Amazon Tells 1000’s of Workers to Relocate or Resign

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

Mass Layoffs Regardless of Stellar Earnings

Microsoft just lately carried out 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 workers, or 3% of its workforce.

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

Associated: Microsoft’s CEO Says the Firm’s Mass Layoffs, Regardless of Monetary Success, Are ‘Weighing Closely on Me’ in an Inside Memo

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

“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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