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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 June 2024, Microsoft announced it would be laying off 1,000 employees from the company's mixed reality and Azure cloud computing divisions. 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. In January 2023, CEO Satya Nadella announced Microsoft would lay off 10,000 employees. On October 7, Microsoft acquired Ally.io, a software service that measures companies' progress against OKRs, planning to incorporate it into its Viva family of employee experience products.
In July 2025, Microsoft announced another round of layoffs, cutting approximately 9,000 employees in its largest workforce reduction in over two years. In May 2025, Microsoft announced that it is laying off more than 6,000 employees, around three percent of the company's entire workforce. The layoffs primarily affected Activision Blizzard employees, but some Xbox and ZeniMax employees were also affected. Its total market value was over $410B—with the stock price hitting $50.04 a share, the highest since early 2000. 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). Partners include Abu Dhabi-backed MGX and Nvidia, which will provide AI expertise.
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