The program authorizes the government to secretly access data of non-US citizens hosted by American companies without a warrant. In June 2024, Microsoft announced it would be laying off 1,000 employees from the company’s mixed reality and Azure cloud computing divisions. Its best-known software products are the Windows line of operating systems and the Microsoft Office and Microsoft 365 suite of productivity applications, which most notably include the Word word processor, Excel spreadsheet editor, and the PowerPoint presentation program. Often described as a Big Tech company, Microsoft is the largest software company by revenue, one of the most valuable public companies,a and one of the most valuable brands globally.
- Microsoft is one of only two U.S.-based companies that have a prime credit rating of AAA.
- Additional offices are located in Bellevue and Issaquah, Washington (90,000 employees worldwide).
- In July 2024, it was reported that the company was laying off its diversity, equity, and inclusion (DEI) team.
- Though the company had subsequent increases in dividend payouts, the price of Microsoft’s stock remained steady for years.
- The statement also marked the beginning of three-part program to enhance Microsoft’s encryption and transparency efforts.
Watch videos on different devices
The Human Rights Campaign Corporate Equality Index, a report of how progressive the organization deems company policies towards LGBT employees, rated Microsoft as 87% from 2002 to 2004 and as 100% from 2005 to 2010 after it allowed gender expression. Bill Gates claims the cap on H1B visas makes it difficult to hire employees for the company, stating “I’d certainly get rid of the H1B cap” in 2005. MSDN also offers subscriptions for companies and individuals, and the more expensive subscriptions usually offer access to pre-release beta versions of Microsoft software.
In July 2024, it was reported that the company was laying off its diversity, equity, and inclusion (DEI) team. On November 20, 2023, Satya Nadella announced that Sam Altman, who had been ousted as CEO of OpenAI just days earlier, and Greg Brockman, who had resigned as president, would join Microsoft to lead a new advanced AI research team. The service includes Copilot, a GPT-4 based large language model tool to query and visualize data, write code, initiate simulations, and educate researchers. In June 2023, Microsoft released Azure Quantum Elements to run molecular simulations and calculations in computational chemistry and materials science using a combination of AI, high-performance computing and quantum computing. On January 23, 2023, Microsoft announced a new multi-year, multi-billion dollar investment deal with ChatGPT developer OpenAI. Microsoft also named Phil Spencer, head of the Xbox brand since 2014, the inaugural CEO of the newly established Microsoft Gaming division, which now houses the Xbox operations team and the three publishers in the company’s portfolio (Xbox Game Studios, ZeniMax Media, Activision Blizzard).
More apps in one place
The company has a history of antitrust battles in the U.S. and Europe, with over €2 billion in EU fines previously imposed for similar abuses. Internal Revenue Service was alleging that the company owed the U.S. $28.9 billion in past taxes, plus penalties related to mis-allocation of corporate profits over a decade. In 2020, ProPublica reported that the company had diverted more than $39 https://www.justbit-nl.nl/ billion in U.S. profits to Puerto Rico using a mechanism structured to make it seem as if the company was unprofitable on paper.
People who use its products and services often end up becoming dependent on them, a process known as vendor lock-in. This is due to the company being tax resident in Bermuda as mentioned in the accounts for ‘Microsoft Round Island One, a subsidiary that collects license fees from the use of Microsoft software worldwide. The company is often referred to as a “Velvet Sweatshop”, a term which originated in a 1989 Seattle Times article, and later became used to describe the company by some of Microsoft’s own employees. Historically, Microsoft has also been accused of overworking employees, in many cases, leading to burnout within just a few years of joining the company. Frequently criticized are the ease of use, robustness, and security of the company’s software. Microsoft initially moved onto the grounds of the campus on February 26, 1986, weeks before the company went public on March 13.
Global
As reported by several news outlets, an Irish subsidiary of Microsoft based in the Republic of Ireland declared £220 bn in profits but paid no corporation tax for the year 2020. This characterization is derived from the perception that Microsoft provides nearly everything for its employees in a convenient place, but in turn overworks them to a point where it would be bad for their (possibly long-term) health. It has also been criticized for the use of permatemp employees (employees employed for years as “temporary”, and therefore without medical benefits), the use of forced retention tactics, which means that employees would be sued if they tried to leave.
The Microsoft 365 Copilot app empowers your employees to do their best work with Copilot in the apps they use daily.
- On July 19, 2024, a global IT outage impacted Microsoft services, affecting businesses, airlines, and financial institutions worldwide.
- Microsoft initially moved onto the grounds of the campus on February 26, 1986, weeks before the company went public on March 13.
- The program authorizes the government to secretly access data of non-US citizens hosted by American companies without a warrant.
- This is due to the company being tax resident in Bermuda as mentioned in the accounts for ‘Microsoft Round Island One, a subsidiary that collects license fees from the use of Microsoft software worldwide.
- Founded in 1975, the company became influential in the rise of personal computers through software like Windows, and has since expanded to Internet services, cloud computing, artificial intelligence, video gaming, and other fields.
- In May 2016, Microsoft announced another 1,850 job cuts mostly in its Nokia mobile phone division.
2011: Microsoft Azure, Windows Vista, Windows 7, and Microsoft Stores
On October 7, Microsoft acquired Ally.io, a software service that measures companies’ progress against OKRs. In October 2021, Microsoft announced that it began rolling out end-to-end encryption (E2EE) support for Microsoft Teams calls in order to secure business communication while using video conferencing software. In the same month, Microsoft acquired Australia-based video editing software company Clipchamp. In September 2021, it was announced that the company had acquired Takelessons, an online platform that connects students and tutors in numerous subjects. The announcement came with confusion after Microsoft announced Windows 10 would be the last version of the operating system.
1994: Windows and Office
In January 2020, the company announced a strategy to take the company carbon negative by 2030 and to remove all carbon that it has emitted since its foundation in 1975. In February 2010, however, Microsoft took a stance against adding additional public transport and high-occupancy vehicle (HOV) lanes to the State Route 520 and its floating bridge connecting Redmond to Seattle; the company did not want to delay the construction any further. The “Connector” does not compete with the public bus system and works with it to provide a cohesive transportation network not just for its employees but also for the public.
In the same month, Microsoft announced the open source implementation of Windows Forms and the Windows Presentation Foundation (WPF) which will allow for further movement of the company toward the transparent release of key frameworks used in developing Windows desktop applications and software. On February 12, 2009, Microsoft announced its intent to open a chain of Microsoft-branded retail stores, and on October 22, 2009, the first retail Microsoft Store opened in Scottsdale, Arizona; the same day Windows 7 was officially released to the public. Azure Services Platform, the company’s entry into the cloud computing market for Windows, launched on October 27, 2008.
Media Services
Microsoft is one of only two U.S.-based companies that have a prime credit rating of AAA. Microsoft is ranked No. 14 in the 2022 Fortune 500 rankings of the largest United States corporations by total revenue; and it was the world’s largest software maker by revenue in 2022 according to Forbes Global 2000. On July 2, 2025, Microsoft announced it would cut nearly 4% of its workforce, around 9,000 jobs, to control costs amid heavy AI infrastructure spending, while also restructuring management and streamlining operations. The company had restructured operations in Russia after the 2022 Russian invasion of Ukraine, but those restructuring efforts had failed. On February 28, 2025, Microsoft announced that Skype would be shutting down on May 5, 2025, to streamline its focus on Microsoft Teams. Microsoft also announced relaunch of its controversial tool, Recall, in November 2024 after addressing privacy concerns.
The increased necessity for remote work and distance education drove demand for cloud computing and grew the company’s gaming sales. On September 21, 2020, Microsoft announced its intent to acquire video game company ZeniMax Media, the parent company of Bethesda Softworks, for about $7.5 billion, with the deal expected to occur in the second half of 2021 fiscal year. In February 2019, hundreds of Microsoft employees protested the company’s war profiteering from a $480 million contract to develop virtual reality headsets for the United States Army. In December 2018, Microsoft announced Project Mu, an open source release of the Unified Extensible Firmware Interface (UEFI) core used in Microsoft Surface and Hyper-V products.
In May 2018, Microsoft partnered with 17 American intelligence agencies to develop cloud computing products. In April the company further expressed willingness to embrace open source initiatives by announcing Azure Sphere as its own derivative of the Linux operating system. In April 2018, Microsoft released the source code for Windows File Manager under the MIT License to celebrate the program’s 20th anniversary. On January 12, Microsoft released PowerShell Core 6.0 for the macOS and Linux operating systems.