Is Microsoft’s Bold Move to End Remote Work a Game-Changer or the Beginning of Office Politics 2.0?

Microsoft is planning to implement a stricter return-to-office mandate as soon as next year, sources told Business Insider.

Since the pandemic, Microsoft has had a flexible work arrangement, allowing remote work as much as half of the time. According to the BI report, Microsoft is considering increasing the requirement for in-person work for employees based in its Redmond, Washington, headquarters to at least three days a week starting in January.

Microsoft is still working out the details of the plan and intends to announce it in September, the sources said. A Microsoft spokesperson told BI that the company was considering revising its flexible work schedule, but had yet to finalize any changes.

Related: Microsoft Just Became the Second Company in History to Achieve a $4 Trillion Valuation — Here’s How

A return-to-office mandate could impact tens of thousands of Microsoft employees. As of June 30, Microsoft employed 228,000 workers, with 125,000 located in the U.S.

If Microsoft implements a stricter return-to-office policy, it would join a slew of other companies that have tightened the limits on remote work recently — or eliminated it altogether.

In 2025, both AT&T and Sweetgreen revised their stances on remote work, with AT&T asking U.S. staff to work all five days from the office while Sweetgreen mandated four days. Both companies previously required staff to work in person three days a week.

Meanwhile, Amazon announced a sweeping return-to-office mandate in September, requiring employees to work from the office five days a week starting in January instead of adhering to a hybrid schedule. Though the move met with pushback from staff — and inspired 500 employees to sign a letter in protest — Amazon persisted with the move.

Related: Amazon Tells Thousands of Employees to Relocate or Resign

According to a study conducted last year by Bamboo HR, return-to-office mandates were often layoffs in disguise, designed to pare down a workforce without conducting official job cuts. About a quarter of C-Suite executives surveyed wanted to inspire “voluntary turnover” with stricter return-to-office policies.

Mass Layoffs Despite Stellar Earnings

Microsoft recently conducted mass layoffs, eliminating 9,000 roles in July, or nearly 4% of its workforce. Two months earlier, in May, Microsoft laid off over 6,000 employees, or 3% of its workforce.

At the same time, Microsoft has reported stellar earnings, greater than analyst expectations. Last month, Microsoft announced that for the quarter ending June 30, revenue was up 18% from the previous year, reaching $76.4 billion, while net income was $27.2 billion, a 24% increase.

Related: Microsoft’s CEO Says the Company’s Mass Layoffs, Despite Financial Success, Are ‘Weighing Heavily on Me’ in an Internal Memo

Microsoft CEO Satya Nadella explained the job cuts in a memo to staff released on Microsoft’s corporate blog last month. Nadella acknowledged the discrepancy between Microsoft’s “thriving” financials and his decision to still lay off staff.

“This is the enigma of success in an industry that has no franchise value,” Nadella wrote, without explaining further.

Microsoft stock is up over 24% year-to-date at the time of writing.

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