Microsoft (MS), headquarters in Redmond, has also decided to require employees in the Puget Sound area, including Seattle, to come to the office at least three days a week starting next year. This represents a significant shift for MS, which has maintained a relatively flexible work-from-home policy since the pandemic began, signaling a shift toward more in-person work.
The policy will take effect at the end of February 2026 and will initially apply to employees living within a 50-mile radius of the office.
Amy Coleman, Microsoft’s Chief People Officer (CPO), stated in an internal announcement, “Data shows that more frequent in-person work leads to higher employee energy, greater productivity, and better performance.”
This move represents a further step forward from the hybrid work model Microsoft proposed after the pandemic. At the time, the company recommended 50% of the workweek depending on role, but did not impose a mandatory company-wide work-from-home policy. While employee ID entry records were monitored, no actual sanctions were imposed.
However, with major tech companies recently strengthening their in-person policies, MS appears to be taking a more proactive approach. Amazon mandated a three-day workweek starting in 2023 and transitioned to a full five-day workweek starting in early 2025. Meta has also adopted similar policies. Microsoft plans to gradually implement this policy for other US offices and international workers, but a specific schedule has not yet been released.
Coleman said, “Teamwork and innovation require actual time spent together,” suggesting that the future direction of the organization will be centered on “face-to-face interactions.”
Microsoft has laid off 42 more employees in its Redmond headquarters. The company has been laying off employees for months, citing workforce restructuring as part of its increased investment in artificial intelligence (AI). The layoffs were disclosed in documents filed with Washington state authorities. This brings the number of Microsoft employees laid off in Washington alone to over 3,200 this year.
Microsoft explained, “This is separate from previous layoff announcements and is small compared to the overall size of the company.” A company spokesperson stated, “Changes in our organization and workforce are inevitable in the course of running our business,” and added, “We will continue to support our customers and partners and focus our investments in strategic areas for future growth.”
Microsoft has been cutting staff almost every month since May of this year. More than 6,000 people were laid off in May and 9,000 in July, bringing the total number of layoffs this year to over 15,000. This represents one of the largest restructurings in the company’s history. Ironically, this summer, amidst the mass layoffs, Microsoft announced its highest-ever quarterly results. For the fourth quarter of fiscal year 2025 (ending June 30), Microsoft exceeded Wall Street expectations with revenue of $76.4 billion and net income of $27.2 billion.
Notably, Azure, which was disclosed for the first time, surpassed $75 billion in annual revenue, outpacing Amazon Web Services (AWS) when growth is considered alone.
CEO Satya Nadella acknowledged internal challenges last July, saying, “The discrepancy between performance and mass layoffs is causing confusion and uncertainty among employees.” This isn’t just Microsoft. Other global IT companies, including Amazon, Oracle, and Salesforce, have also been cutting staff this year.
Amazon laid off some employees in its cloud division in July, and Oracle laid off more than 260 people in the Seattle area alone over the summer. Salesforce also recently laid off more than 90 people in its Seattle and Bellevue offices.