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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. On October 10, 2018, Microsoft joined the Open Invention Network community despite holding more than 60,000 patents. In March the company also established guidelines that censor users of Office 365 from using profanity in private documents. Intune for Education is a new cloud-based application and device management service for the education sector. During the summer of 2015 the company lost $7.6 billion related to its mobile-phone business, firing 7,800 employees. Since Nadella became CEO, the company has changed focus towards cloud computing. To cope with the potential for an increase in demand for products and services, Microsoft opened a number of "holiday stores" across the U.S. to complement the increasing number of "bricks-and-mortar" Microsoft Stores that opened in 2012. The Surface was unveiled in June 2012, becoming the first computer in the company's history to have its hardware made by Microsoft.
It created one of the world's largest private bus systems, the "Connector", to transport people from outside the company; for on-campus transportation, the "Shuttle Connect" uses a large fleet of hybrid cars to save fuel. As of January 2011,update it has no products that are completely free from PVC and BFRs.needs update Microsoft's deadline for phasing out brominated flame retardant (BFRs) and phthalates in all products was in 2012 but its commitment to phasing out PVC is not clear. At the time, data centers consumed up to 2% of all global electricity, and this amount was projected to increase. In 2011, Greenpeace released a report rating the top ten big brands in cloud computing on the sources of electricity for their data centers. In August 2018, Microsoft implemented a policy for all companies providing subcontractors to require 12 weeks of paid parental leave to each employee. 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.
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. 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. 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. The company 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. Frequently criticized are the ease of use, robustness, and security of the Microsoft's software.
The cuts affected multiple divisions, including Xbox, with 830 positions eliminated at its Redmond, Washington headquarters. In July 2025, Microsoft announced another round of layoffs, cutting approximately 9,000 employees in its largest workforce reduction in over two years. Blizzard president Mike Ybarra and chief design officer Allen Adham also resigned. The layoffs primarily affected Activision Blizzard employees, but some Xbox and ZeniMax employees were also affected. In November 2018, the company won a $480 million military contract with the U.S. government to bring augmented reality (AR) headset technology into the weapon repertoires of American soldiers. For the first time in 20 years Apple Inc. surpassed Microsoft in Q quarterly profits and revenues due to a slowdown in PC sales and continuing huge losses in Microsoft's Online Services Division (which contains its search engine Bing). Consequently, in February 2011 Microsoft released a corporate bond amounting to $2.25 billion with relatively low borrowing rates compared to government bonds.
Following media reports about PRISM, NSA's massive electronic surveillance program, in May 2013, several technology companies were identified as participants, including Microsoft. Microsoft provides information about reported bugs in its software to intelligence agencies of the United States government, prior to the public release of the fix. In May 2025, Microsoft announced that it is laying off more than 6,000 employees, around three percent of the company's entire workforce. Microsoft is one of only two U.S.-based companies that have a prime credit rating of AAA. The announcement came a day after hosting a Sting concert for 50 people, including Microsoft executives, in Davos, Switzerland. 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). In the same month, Microsoft acquired Australia-based video editing software company Clipchamp.
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In June 2025, a United Nations report on corporations complicit in the Gaza genocide showed that Microsoft was one of several companies "central to Israel's surveillance adrian lucky wheel apparatus and the ongoing Gaza destruction." In mid-2025, Microsoft's Russian division, Microsoft Rus LLC, filed for bankruptcy after President Vladimir Putin stated that foreign services providers should be throttled in Russia to make way for domestic software. While experts regarded these changes as improvements, they advised caution, with some recommending further testing before users opted in. The outage was traced back to a flawed update of CrowdStrike's cybersecurity software, which resulted in Microsoft systems crashing and causing disruptions across various sectors. In July 2024, it was reported that the company was laying off its diversity, equity, and inclusion (DEI) team. However, the plan was short-lived, as Altman was subsequently reinstated as OpenAI's CEO and Brockman rejoined the company amid pressure from OpenAI's employees and investors on its board. 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.
