Microsoft Planning Return-to-Office Mandate: Report

Microsoft is planning to implement a stricter return-to-office mandate as quickly as subsequent yr, sources advised 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. 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 no less than three days every week beginning in January.

Microsoft remains to be figuring out the small print of the plan and intends to announce it in September, the sources mentioned. A Microsoft spokesperson advised 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 might influence tens of hundreds 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 might 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. employees to work all 5 days from the workplace whereas Sweetgreen mandated 4 days. Each firms beforehand required employees to work in particular person three days every week.

In the meantime, Amazon introduced 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 employees — and impressed 500 workers to signal a letter in protest — Amazon endured with the transfer.

Associated: Amazon Tells Hundreds of Staff to Relocate or Resign

Based on a research performed final yr 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 few 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 performed 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, higher than analyst expectations. Final month, Microsoft introduced that for the quarter ending June 30, income was up 18% from the earlier yr, reaching $76.4 billion, whereas internet earnings 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 Inner 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 choice to nonetheless lay off employees.

“That is the enigma of success in an trade 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.

Be part of high CEOs, founders and operators on the Stage Up convention to unlock methods for scaling what you are promoting, boosting income and constructing sustainable success.