Microsoft Denies Rumors of Massive January Layoffs in Redmond as Library Closures Signal Cost-Cutting

Jan. 18, 2026 — Redmond, Wash. Microsoft executives firmly denied rumors of 11,000 to 22,000 layoffs planned for January, calling them “100 percent made up / speculative / wrong,” amid ongoing employee concerns and recent campus changes at its Redmond headquarters.

Chief Communications Officer Frank X. Shaw publicly rebutted the speculation on X, originating from anonymous forums like Blind and Reddit, which alleged cuts targeting cloud, gaming, and sales teams. The rumors surfaced early in January and were reported widely by Jan. 8, with Shaw adding a sarcastic reply, “i eagerly await,” to a related post.

“100 percent made up / speculative / wrong.”

Employees expressed fears on platforms like X and TheLayoff.com, particularly those over 40, suspecting age targeting in potential Redmond cuts, as highlighted in recent posts. No WARN notices or official confirmations of new layoffs have emerged as of Jan. 18.

This week, Microsoft closed physical libraries at its Redmond campus—along with sites in Hyderabad, Beijing, and Dublin—repurposing them into AI-powered “Skilling Hubs” for employee training. A spokesperson explained:

“We’re evolving Microsoft Library locations and services to better support how employees learn, stay current, and build new skills.”

The shift includes reduced subscriptions to news services, aligning with broader restructuring tied to heavy AI investments, though no direct layoffs were linked.

For context, Microsoft conducted significant cuts in 2025, including about 9,000 global roles announced on July 2, with 830 in Washington state affecting Redmond-based Xbox and sales teams. An additional more than 300 Washington layoffs followed in August, contributing to over 15,000 total reductions amid $88 billion in AI spending.