Microsoft has issued a forceful and direct denial against swirling rumours that the tech giant is planning to slash up to 22,000 jobs this month. The company's chief communications officer, Frank Shaw, took to social media to label the speculation as completely false.
From Rumour to Rejection: The Timeline of a Denial
The speculation originated from a report by investment site TipRanks, which claimed Microsoft was gearing up for widespread layoffs in January 2026. The report suggested the cuts could impact between 11,000 and 22,000 positions across critical divisions like Azure Cloud, Xbox, and global sales teams. As these claims gained traction on social media platforms, Frank Shaw intervened with a definitive statement.
On the platform X, Shaw dismissed the entire narrative, writing, "100 percent made up / speculative / wrong." This broad denial came after tech publication Windows Central had initially indicated the reports were inaccurate, at least concerning the Xbox division. When faced with skepticism from users in the replies, Shaw stood firm, telling one commenter he "eagerly awaits" the news he insists will never materialize.
Why the Rumours Found Fertile Ground
The public's readiness to believe these layoff rumours is not without reason. Microsoft has a recent history of significant workforce reductions. Over the past year and a half, the company has eliminated more than 15,000 positions. The most recent major round occurred in July 2025, when approximately 9,000 employees were let go, a move that also involved studio closures and the cancellation of game projects.
Xbox chief Phil Spencer had defended those cuts as necessary for the company's future, emphasizing the need for greater operational efficiency. Furthermore, CEO Satya Nadella has previously described Microsoft's size as a "massive disadvantage," while setting ambitious profit targets for the Xbox division. Adding to employee anxiety is Microsoft's massive $80 billion commitment to AI infrastructure—a tripling of its previous year's investment—which has led to widespread speculation about cost-cutting in other areas to fund this push.
January Jitters and the Focus on AI
The specific focus on January for layoff rumours is also linked to Microsoft's past patterns, as the company has sometimes adjusted its workforce early in the calendar year. Anonymous posts on the professional network Blind added fuel to the fire, suggesting that middle management and legacy teams might be targeted while AI researchers would be protected. However, Shaw's unequivocal denial strongly indicates that 2026 will not follow this pattern, at least not on the catastrophic scale of 11,000 to 22,000 job losses.
For now, Microsoft's leadership has drawn a clear line, attempting to quell the anxiety that has built up within the tech community and among its own employees. The episode highlights the tense climate in the technology sector, where massive investments in artificial intelligence and pressures for efficiency continue to spark fears about job security.
