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

Since the onset of the pandemic, Microsoft has embraced a flexible work model, permitting employees to work remotely up to 50% of the time. According to a report from BI, the company is contemplating increasing the requirement for employees stationed at its Redmond, Washington, headquarters to be physically present in the office at least three days per week beginning in January.

The specifics of this plan are still being finalized, with Microsoft planning to release an official announcement in September, as per insider information. A spokesperson from Microsoft mentioned to BI that while they are evaluating adjustments to their flexible work strategy, no definitive decisions have been made yet.

This potential shift in policy might affect thousands of Microsoft employees, considering the company employed 228,000 people as of June 30, with 125,000 of them based in the United States.

Should Microsoft adopt a more stringent return-to-office directive, it would align itself with several other companies that have recently restricted or completely discontinued remote work options.

In 2025, both AT&T and Sweetgreen altered their remote work policies, with AT&T requiring U.S. employees to return to a five-day office schedule, and Sweetgreen implementing a four-day in-office workweek. Previously, both had enforced a three-day in-office requirement.

Amazon, on the other hand, declared in September a comprehensive return-to-office policy mandating employees to work onsite five days a week starting January, rather than following a hybrid work model. Despite facing resistance from employees — including a letter signed by 500 staff members — Amazon continued with their plan.

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.

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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