Microsoft Planning Return-to-Workplace Mandate: Report

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

Because the 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 growing the requirement for in-person work for workers primarily based in its Redmond, Washington, headquarters to at the least three days per week beginning in January.

Microsoft continues to be figuring out the small print of the plan and intends to announce it in September, the sources stated. A Microsoft spokesperson informed BI that the corporate was contemplating revising its versatile work schedule, however had but to finalize any adjustments.

Associated: Microsoft Simply Grew to become 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 staff. 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 could be part of a slew of different firms which have tightened the boundaries 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 per week.

In the meantime, Amazon introduced a sweeping return-to-office mandate in September, requiring staff 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 staff to signal a letter in protest — Amazon endured with the transfer.

Associated: Amazon Tells Hundreds of Workers to Relocate or Resign

Based on a examine performed final 12 months by Bamboo HR, return-to-office mandates had 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 staff, or 3% of its workforce.

On the identical time, Microsoft has reported stellar earnings, better 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 internet earnings was $27.2 billion, a 24% enhance.

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 choice 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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