Did a short article about layoffs drag down the stock price? Microsoft executives clarify: 100% fake news.

As US tech giants invest heavily in building data centers, the pressure of capital expenditure is gradually increasing, causing more and more tech company employees to worry about losing their jobs.

Recently, a rumor circulated online that Microsoft was preparing to lay off tens of thousands of employees, causing considerable concern. Although company executives quickly denied the rumor on online platforms, people's anxieties are unlikely to completely dissipate.

The "layoff essay" has caused widespread panic.

Rumors have recently circulated that Microsoft is "considering large-scale layoffs" this month, potentially cutting 11,000 to 22,000 jobs across its Azure cloud services, Xbox, and global sales teams.

These claims appear to have originated on overseas online forums like Reddit and Blind, and the news quickly spread to social media platforms such as Bluesky and X, attracting widespread attention.

Microsoft's stock price fell sharply after the market opened on Thursday, Eastern Time, and ultimately closed down 1%, with this rumor possibly being one of the reasons that dragged down the stock price.

After the news broke, Microsoft executives quickly denied it.

Microsoft's Chief Communications Officer, Frank Shaw, refuted these rumors on the X platform, calling them "100% fabricated/speculation/false."

He also responded sarcastically to a post that suggested layoffs would happen in the coming weeks, writing, "I can't wait."

Large-scale layoffs are not unprecedented

Despite Microsoft executives’ explicit denials, doubts from the outside world are unlikely to be completely dispelled, as there are precedents for such large-scale layoffs.

Last year, Microsoft underwent multiple rounds of layoffs, reducing its workforce by more than 15,000 employees between May and September. In July alone, Microsoft laid off approximately 9,000 employees.

At the time, Phil Spencer, head of the Xbox division, wrote in a memo to employees that the layoffs were "necessary for the company's long-term development" and that they would "improve flexibility and efficiency."

Such large-scale, multi-round layoffs reflect that while Microsoft is heavily investing in AI, its financial pressure is also increasing.

Although artificial intelligence itself cannot completely replace human labor, the high costs that tech giants like Microsoft have invested in building AI systems have forced companies to adjust their budgets, leading to layoffs.

Microsoft alone spent $88 billion in fiscal year 2025, ending in June last year, to build its artificial intelligence infrastructure, and this year, Microsoft's capital expenditures continue to grow.

Against this backdrop, there is reason to suspect that the company will increasingly be inclined to cut costs in other areas to offset these expenditures.