Does Microsoft Have a Toxic Culture in 2025?

I worked at Microsoft from June 1997 to June 2025. For most of those years, I was proud to say that I worked at Microsoft. Many of my friends still work at Microsoft, but they are not happy with what they say is a culture of lies and discrimination.

Microsoft has terminated or laid off approximately 18,000 people so far in 2025: 2,000 in January, 6,000 in May, 1,000 in June, 9,000 in July — the exact numbers are impossible to determine. (Update: several sources say 15,000 rather than 18,000 employees gone).

Microsoft is investing billions of dollars in AI infrastructure, and the only place this money can come from is reduced headcount. One credible analysis I read predicted that Microsoft will lay off 10,000 employees per year over the next 4-5 years.

OK, companies need to restructure from time to time, so what’s the problem? Briefly, according to my friends: blatant (but unprovable) lies, discrimination, and lack of integrity.

* The 2,000 terminations in January were supposedly only for low-performing employees. Employees were fired with zero warning, and zero severance. Families and lives destroyed. The six people I know who were part of this purge all had average or above performance — I’ve seen their reviews. Any statement that all of the terminations were for performance reasons is, at least partially incorrect or even a blatant (but unprovable) lie. (Of course this all depends on a definition of “low-performing”).

* According to some business administration friends, a part of senior executives’ compensation is based on how well they meet their hidden diversity percentage “goals” involving basically anyone but white men. So, guess which group is being laid off, resulting in increased percentages of all other categories? In the most recent round of layoffs, in the one group where I have solid information from a friend, 100% of the employees who were laid off were men (8 out of 8). Blatant illegal (but unprovable) discrimination. I have no personal information about diversity goals but I do believe they probably exist. (The annual diversity report is filled with percentages of this group and that group, and the report includes, “While increasing representation is vital to our D&I goals . . ” and “Every employee sets an annual D&I Core Priority goal . . “)

* A high-ranking manager I know told me about the decision process for layoffs in his group. Each proposed list of employees to lay off was met with a verbal (never written), “try again” until the list of those to be laid off had no Indian employees. My acquaintance said they called this the “DEI” mandate — “Don’t Eliminate Indians”. This sounds hard to believe but my friend is not prone to hyperbole. If so, blatant (but unprovable) discrimination.

* In a recent round of layoffs, the public relations release said essentially that layoffs were designed to reduce the number of management layers. The decisions of who to release are made by managers. The result is that managers select engineers rather than their own manager colleagues for termination. In a recent round of layoffs, in Washington state, over 40% of the positions laid off were engineers — by far the largest group. Less than 5% of the positions laid off were managers. Blatant (but unprovable) self-serving corruption and lack of integrity.

No company is perfect, but according to my friends, Microsoft has transformed from a good company into a shameful company with little-to-no internal integrity. I was fortunate to work in an organization (Research) where I didn’t directly experience these toxic patterns, but according to my friends, things are not good. I hope much of the information above is not entirely accurate but I have no data to dispute it.

Microsoft has gone through rough stretches before. I hope the company can rebound and become an admirable company again.



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20 Responses to Does Microsoft Have a Toxic Culture in 2025?

  1. Prior...'s avatar Prior... says:

    great comics and important post

  2. Fernando F's avatar Fernando F says:

    Years ago, I had some experiences as a candidate for a position on those big companies that confirmed that the “DEI” as described is complemented by a “DHNI” policy too.

  3. Since posting this article, several of my friends who are at MS have told me “Thank you for posting.” According to them, there is an increasing culture of fear and uncertainty, cover-your-behind, and sabotage of other groups. Sad, but these are normal consequences of mass layoffs.

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  7. Atul Patel's avatar Atul Patel says:

    The allegation that the list of those to be laid off is not approved until it had no Indian employees is defamatory and not worthy of your name, Mr. McCaffrey. Extraordinary allegations such as this should be backed up with at least some evidence and you have provided none. On the face of it, this is extremely hard to believe that because “Indians” are not a cohesive group, similar to “Europeans” are not a cohesive group. Just like Europe consists of multiple countries with different languages and sub-cultures, so too India consists of multiple states with different languages and sub-cultures. Just like a French man is unlikely to watch a German’s back so too a Tamil is unlikely to watch a Gujarati’s back. Those groups are not in the same social circle. The allegation would be much more believed if it said a Tamil VP would not approve of the lay off list until it had no Tamils.

    • The guy who told me this anecdote is a neighbor of mine. Like you, I found it hard to believe, but he said the story was absolutely true. Obviously, if this happened, it occurred only in some groups, not company wide. The bigger story is that when there are mass layoffs, toxic behavior of all kinds emerges, and employees will start looking for people to blame, rightly or wrongly.

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  11. James Denevan's avatar James Denevan says:

    I work at Microsoft and it used to be good but working there sucks now. Constant lies from mangement, backstabbing, cover your ass, sabotage of other groups. In the last round, some good employees were ejected but some women who do nothing and contribute zero kept their jobs. Quotas in action.

  12. knight21024's avatar knight21024 says:

    This article is “cast” in the right light.

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