Microsoft

Microsoft secured a deal with the U.S. GSA, promising $3.1 billion in savings on cloud services for federal agencies. This aligns with the “OneGov” initiative, aimed at reducing government costs. The deal covers Office, Azure, Dynamics 365, and Sentinel, and includes free Copilot access for some users. GSA Commissioner Josh Gruenbaum cited seamless price switching and Microsoft’s desire to partner on AI adoption and gain market share from rivals like Amazon and Google. This agreement highlights Microsoft’s crucial role as a technology partner for the U.S. government.

Microsoft fired two employees after a protest at its Redmond headquarters by “No Azure for Apartheid,” a group objecting to the Israeli military’s use of Microsoft software. The company cited serious breaches of policy and unlawful break-ins. The group claims the terminations involved Riki Fameli and Anna Hattle. Microsoft is investigating the protest, which included blocking access to an executive’s office and planting recording devices. This follows earlier protests and accusations that the Israeli military misused Microsoft’s Azure cloud.

Microsoft is considering tightening its return-to-office policy, potentially requiring employees at its Redmond headquarters to work in the office at least three days a week. This signals a shift from the company’s flexible work arrangements implemented since 2020, which allowed many employees to work remotely up to 50% of the time. The policy change, potentially announced as early as September and implemented in January, contrasts with Microsoft’s earlier lenient approach compared to companies like Apple.

Elon Musk’s xAI filed a trademark application for “Macrohard,” sparking speculation of a rivalry with Microsoft. This follows Musk’s July announcement of a multi-agent AI software company powered by Grok, designed to tackle “macro” and “hard” problems. The name “Macrohard,” seemingly a jab at Microsoft, adds fuel to the existing tension between Musk and Bill Gates, marked by public disagreements on Tesla stock and other criticisms. The trademark suggests Musk is seriously pursuing this venture.

Microsoft has expanded its .NET bug bounty program, increasing the top reward to $40,000 for critical vulnerabilities in .NET and ASP.NET Core. The program now encompasses a wider range of technologies and offers tiered rewards based on the severity of the vulnerability, incentivizing researchers to focus on the most damaging flaws, like Remote Code Execution (RCE) and Elevation of Privilege (EoP). This move reflects Microsoft’s commitment to proactive security and leveraging external talent to identify weaknesses.

Microsoft has joined the $4 Trillion Club, becoming the second company after Nvidia to reach this valuation. Shares surged 8% following a strong Fiscal Year 2025 Q4 earnings report. Microsoft reported a Q4 revenue of $76.44 billion, up 18% year-over-year, driven by AI-powered cloud services. Full-year revenue reached $281.724 billion, a 15% increase. Analysts are optimistic, with Morgan Stanley and JPMorgan Chase raising their price targets. Nvidia first achieved the $4 trillion milestone earlier in July.

Microsoft is shutting down its “Movies & TV” store on Windows and Xbox after 12 years. Users will no longer be able to purchase new digital movies and TV shows. Launched in 2012 to compete with rivals like Apple and Amazon, the service allowed users to rent or buy content across Microsoft’s ecosystem. While new purchases are halted, users can still access previously purchased content. This closure signifies Microsoft’s exit from the direct-to-consumer streaming market, following the earlier termination of its Groove Music streaming service.

Microsoft announced its second major workforce cut this year, eliminating approximately 9,000 jobs (under 4% of its workforce) to streamline operations, with controversy erupting over revoked unvested stock awards from laid-off employees. Former Xbox developer Noble Smith criticized the policy as stripping potential family education funds, sparking debate on compensation ethics during layoffs. Analysts note competitors sometimes accelerate vesting as goodwill, while Microsoft’s stock clawbacks amid record share prices could save hundreds of millions. The dispute underscores tensions between cost-cutting measures, employee retention, and transparency in equity-based compensation models across the tech sector.

Microsoft announced a second major round of job cuts this year, potentially impacting up to 9,000 roles across departments, geographies, and levels. This move aims to streamline operations and reduce costs amidst increasing AI infrastructure expenses and broader industry trends of workforce adjustments. These cuts represent less than 4% of Microsoft’s global workforce.

Microsoft has developed a 4D topological quantum error-correcting code, a breakthrough promising more reliable and efficient quantum computing. This code, integrated into Azure Quantum, boasts superior error correction, encoding efficiency, and streamlined operations, reducing error rates significantly. It minimizes physical qubit requirements, making quantum computing more practical for applications in fields like medicine and materials science, and compatible with various qubit types.