Microsoft denies viral claims of layoffs affecting up to 22,000 roles
The claims were quickly challenged by Windows Central editor Jez Corden, who stated that the information was false as far as Xbox was concerned.
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A senior Microsoft executive has dismissed viral claims that the company is planning large-scale job cuts, stating that reports suggesting tens of thousands of roles are at risk are entirely inaccurate.
The speculation originated from a report by TipRanks, which claimed that Microsoft was considering layoffs this month that could affect between 11,000 and 22,000 positions across its Azure cloud division, Xbox business and global sales teams. The report gained rapid traction on social media platforms including Bluesky and X, fuelling concerns that the alleged workforce reductions were linked to rising costs associated with artificial intelligence investments.
100 percent made up / speculative / wrong.
— Frank X. Shaw (@fxshaw) January 7, 2026
The claims were quickly challenged by Windows Central editor Jez Corden, who stated that the information was false as far as Xbox was concerned. Shortly afterwards, Microsoft’s chief communications officer, Frank X. Shaw, publicly rejected the report in broader terms.
Shaw, who has been with Microsoft for nearly 17 years, stated on social media that he was awaiting news that he maintained did not exist, reinforcing his position that the report was unfounded. Despite scepticism from some users online, Shaw continued to respond to queries, consistently stating that the claims were inaccurate. Microsoft has not issued a formal company-wide statement beyond the executive’s public remarks.
The episode unfolded against the backdrop of confirmed workforce reductions at Microsoft, which have heightened sensitivity around reports of further job cuts. In early July 2025, the company laid off approximately 9,000 employees. At the time, Xbox head Phil Spencer said the layoffs were necessary to support Microsoft’s long-term success and informed that the restructuring was aimed at improving agility and effectiveness. Several game projects were cancelled and some studios were shut down as part of the process, according to news reports.
