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In June 2024, Microsoft faced a possible EU fine after regulators accused it of abusing market power by bundling its Groups video-conferencing app with its Workplace 365 and Microsoft 365 software program. Microsoft was the primary company to participate within the PRISM surveillance program, in accordance with leaked NSA documents obtained by The Guardian and The Washington Publish in June 2013, and acknowledged by authorities officers following the leak. When the Inner Income Service audited these transactions, ProPublica reported that Microsoft aggressively fought again, including efficiently lobbying Congress to change the law to make it tougher for the agency to conduct audits of enormous companies. This is as a result of firm being tax resident in Bermuda as talked about cowinz within the accounts for ‘Microsoft Spherical Island One, a subsidiary that collects license charges from the use of Microsoft software worldwide. As reported by a number of information outlets, an Irish subsidiary of Microsoft based mostly in the Republic of Ireland declared £220 bn in income but paid no corporation tax for the year 2020.

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The cuts affected a number of divisions, together with Xbox, with 830 positions eradicated at its Redmond, Washington headquarters. In July 2025, Microsoft introduced one other round of layoffs, slicing roughly 9,000 staff in its largest workforce reduction in over two years. In May 2025, Microsoft announced that it’s shedding more than 6,000 employees, round three percent of the company’s entire workforce. The layoffs primarily affected Activision Blizzard employees, but some Xbox and ZeniMax workers were additionally affected.

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