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==Corporate affairs== {{See also|Criticism of Microsoft|Internet censorship in China|Embrace, extend, and extinguish}}Microsoft is ranked No. 14 in the 2022 [[Fortune 500|''Fortune'' 500]] rankings of the [[List of largest companies in the United States by revenue|largest United States corporations by total revenue]];<ref>{{Cite web |title=Fortune 500 Companies 2019: Who Made the List |url=https://fortune.com/fortune500/2022/search/ |access-date=July 1, 2022 |publisher=[[Fortune (magazine)|Fortune]]}}</ref> and it was the world's [[List of the largest software companies|largest software maker]] by revenue in 2022 according to [[Forbes Global 2000|''Forbes'' Global 2000]]. In 2018, Microsoft became the [[List of public corporations by market capitalization|most valuable publicly traded company]] in the world,<ref>{{Cite news |title=How did Microsoft just overtake Apple as the world's most valuable company? |url=https://www.nbcnews.com/business/business-news/how-did-microsoft-just-overtake-apple-world-s-most-valuable-n940751 |url-status=live |archive-url=https://web.archive.org/web/20181129112846/https://www.nbcnews.com/business/business-news/how-did-microsoft-just-overtake-apple-world-s-most-valuable-n940751 |archive-date=November 29, 2018 |access-date=November 28, 2018 |work=NBC News |language=en-US}}</ref> a position it has repeatedly traded with Apple in the years since.<ref>{{Cite web |last=Marino-Nachison |first=David |date=2024-06-12 |title=Apple, Microsoft Battle to Be Most Valuable U.S. Company |url=https://www.wsj.com/livecoverage/fed-meeting-fomc-interest-rate-decision-cpi-inflation-june-2024/card/apple-overtakes-microsoft-as-most-valuable-u-s-company-UyhqB7MKWc5LFbLiQMah |access-date=2024-09-24 |website=[[Wall Street Journal]]}}</ref> In April 2019, Microsoft reached a {{Nowrap|trillion-dollar}} [[Market capitalization|market cap]], becoming the third U.S. public company to be [[Trillion-dollar company|valued at over $1 trillion]].{{Efn|After Apple and Amazon, respectively}} {{as of|2024||}}, Microsoft has the [[List of most valuable brands|third-highest]] global [[brand valuation]]. Microsoft is one of only two U.S.-based companies that have a prime [[credit rating]] of AAA.<ref>{{Cite web |date=August 3, 2023 |title=Looking to Bet On Perfect AAA Credit Ratings? Play These ETFs |url=https://finance.yahoo.com/news/looking-bet-perfect-aaa-credit-171500242.html |website=Yahoo Finance}}</ref> ===Board of directors=== The company is run by a [[board of directors]] made up of mostly company outsiders, as is customary for publicly traded companies. Members of the board of directors as of December 2023 are [[Satya Nadella]], [[Reid Hoffman]], Hugh Johnston, Teri List, [[Sandi Peterson]], [[Penny Pritzker]], Carlos Rodriguez, [[Charles Scharf]], [[John W. Stanton]], [[John W. Thompson]], [[Emma Walmsley]] and [[Padmasree Warrior]].<ref>{{Cite web |url=https://news.microsoft.com/leadership/?section=board-members |title=Microsoft Leadership |date=March 20, 2017 |publisher=Microsoft |access-date=July 31, 2020}}</ref> Board members are elected every year at the annual shareholders' meeting using a majority vote system. There are four committees within the board that oversee more specific matters. These committees include the Audit Committee, which handles accounting issues with the company including auditing and reporting; the Compensation Committee, which approves compensation for the CEO and other employees of the company; the Governance and Nominating Committee, which handles various corporate matters including the nomination of the board; and the Regulatory and Public Policy Committee, which includes legal/antitrust matters, along with privacy, trade, digital safety, artificial intelligence, and environmental sustainability.<ref>{{Cite web |title=Microsoft Corporation Corporate Governance |url=https://www.microsoft.com/en-us/Investor/corporate-governance/board-of-directors.aspx |publisher=Microsoft |access-date=July 31, 2020}}</ref> On March 13, 2020, Gates announced that he is leaving the board of directors of Microsoft and [[Berkshire Hathaway]] to focus more on his philanthropic efforts. According to Aaron Tilley of ''[[The Wall Street Journal]]'' this is "marking the biggest boardroom departure in the tech industry since the death of longtime rival and Apple Inc. co-founder [[Steve Jobs]]."<ref>{{Cite news|url=https://www.wsj.com/articles/bill-gates-to-leave-boards-of-microsoft-and-berkshire-hathaway-11584135172|title=Bill Gates to Leave Boards of Microsoft and Berkshire Hathaway|first=Aaron|last=Tilley|newspaper=Wall Street Journal|date=March 13, 2020|via=www.wsj.com}}</ref> On January 13, 2022, ''The Wall Street Journal'' reported that Microsoft's board of directors plans to hire an external [[law firm]] to review its [[sexual harassment]] and [[gender discrimination]] policies, and to release a summary of how the company handled past allegations of misconduct against Bill Gates and other corporate executives.<ref>{{cite news |last=Tilley |first=Aaron |url=https://www.wsj.com/articles/microsoft-board-to-review-companys-sexual-harassment-and-gender-discrimination-policies-11642107601 |title=Microsoft Board to Review Company's Sexual Harassment and Gender Discrimination Policies |work=[[The Wall Street Journal]] |date=January 13, 2022 |access-date=January 14, 2022 }}</ref> ===Chief executives=== # [[Bill Gates]] (1975–2000) # [[Steve Ballmer]] (2000–2014) # [[Satya Nadella]] (2014–present) ===Financial=== [[File:Microsoft 5-Year Stock History.svg|upright=1.6|thumb|Five year history graph of {{NASDAQ|MSFT}} stock on July 17, 2013.<ref>{{Cite web |url=http://zenobank.com/index.php?symbol=MSFT&page=quotesearch |archive-url=https://web.archive.org/web/20081030114740/http://zenobank.com/index.php?symbol=MSFT&page=quotesearch |url-status=dead |archive-date=October 30, 2008 |title=Five year history graph of (NASDAQ:MSFT) stock |work=ZenoBank |publisher=AlphaTrade |date=September 29, 2009 |access-date=September 29, 2009}}</ref>]] When Microsoft went public and launched its [[initial public offering]] (IPO) in 1986, the opening [[stock]] price was $21; after the [[trading day]], the price closed at $27.75. As of July 2010, with the company's nine [[stock split]]s, any IPO [[share (finance)|shares]] would be multiplied by 288; if one were to buy the IPO today, given the splits and other factors, it would cost about 9 cents.<ref name="Allan 2001" />{{Rp|235–236|date=November 2012}}<ref>{{Cite web |url=http://blog.seattlepi.com/microsoft/archives/102018.asp |work=Seattle Post-Intelligencer |date=March 14, 1986 |title=Microsoft stock is red hot on first trading day |last=Monkman |first=Carol Smith |page=B9 |access-date=July 18, 2010 |archive-url=https://web.archive.org/web/20100221224106/http://blog.seattlepi.com/microsoft/archives/102018.asp |archive-date=February 21, 2010 |url-status=live}}</ref><ref>{{Cite web |url=http://performance.morningstar.com/stock/performance-return.action?p=dividend_split_page&t=MSFT®ion=USA&culture=en-US&s=SPYZ |title=MSFT stock performance and split info |publisher=Morningstar, Inc. |access-date=July 17, 2010 |archive-url=https://web.archive.org/web/20110510012046/http://performance.morningstar.com/stock/performance-return.action?p=dividend_split_page&t=MSFT®ion=USA&culture=en-US&s=SPYZ |archive-date=May 10, 2011 |url-status=live}}</ref> The stock price peaked in 1999 at around $119 ($60.928, adjusting for splits).<ref name="stocksheet">{{Cite web |title=Microsoft stock price spreadsheet from Microsoft investor relations |url=http://download.microsoft.com/download/d/a/7/da7e8eca-4410-4475-a211-03327408b655/msftpricehist.xls |format=xls |publisher=Microsoft |access-date=August 18, 2008 |url-status=dead |archive-url=https://web.archive.org/web/20091010091835/http://download.microsoft.com/download/d/a/7/da7e8eca-4410-4475-a211-03327408b655/msftpricehist.xls |archive-date=October 10, 2009 }}</ref> The company began to offer a [[dividend]] on January 16, 2003, starting at eight cents per share for the fiscal year followed by a dividend of sixteen cents per share the subsequent year, switching from yearly to quarterly dividends in 2005 with eight cents a share per quarter and a [[special dividend|special one-time payout]] of three dollars per share for the second quarter of the fiscal year.<ref name="stocksheet" /><ref name="dividendfaq">{{Cite web |title=Dividend Frequently Asked Questions |url=https://www.microsoft.com/msft/FAQ/dividend.mspx |publisher=Microsoft |access-date=August 18, 2008 |archive-url=https://web.archive.org/web/20080720122305/http://www.microsoft.com/msft/FAQ/dividend.mspx |archive-date=July 20, 2008 |url-status=dead}}</ref> Though the company had subsequent increases in dividend payouts, the price of Microsoft's stock remained steady for years.<ref name="dividendfaq" /><ref>{{Cite web |title=Yahoo MSFT stock chart |url=https://finance.yahoo.com/q/bc?s=MSFT&t=my |publisher=Yahoo Finance |access-date=December 13, 2008 |url-status=dead |archive-url=https://web.archive.org/web/20080123064835/https://finance.yahoo.com/q/bc?s=MSFT&t=my |archive-date=January 23, 2008}}</ref> [[Standard & Poor's]] and [[Moody's Investors Service]] have both given a AAA rating to Microsoft, whose assets were valued at $41 billion as compared to only $8.5 billion in unsecured debt. Consequently, in February 2011 Microsoft released a corporate bond amounting to $2.25 billion with relatively low borrowing rates compared to [[government bond]]s.<ref>{{cite news |url=https://www.reuters.com/article/us-microsoft-bonds-idUSTRE7128EZ20110204 |title=Microsoft sells $2.25 billion of debt at low rates |work=Reuters |date=February 4, 2011 |access-date=July 1, 2017 |archive-url=https://web.archive.org/web/20151107042216/http://www.reuters.com/article/2011/02/04/us-microsoft-bonds-idUSTRE7128EZ20110204 |archive-date=November 7, 2015 |url-status=live}}</ref> For the first time in 20 years [[Apple Inc.]] surpassed Microsoft in Q1 2011 quarterly profits and revenues due to a slowdown in PC sales and continuing huge losses in Microsoft's Online Services Division (which contains its search engine [[Bing (search engine)|Bing]]). Microsoft profits were $5.2 billion, while Apple Inc. profits were $6 billion, on revenues of $14.5 billion and $24.7 billion respectively.<ref>{{Cite web |first=Charles |last=Arthur |url=https://www.theguardian.com/technology/2011/apr/28/microsoft-falls-behind-apple |title=Microsoft falls behind Apple for the first time in 20 years |website=[[The Guardian]] |date=April 28, 2011 |access-date=May 11, 2011 |location=London |archive-url=https://web.archive.org/web/20131019115501/http://www.theguardian.com/technology/2011/apr/28/microsoft-falls-behind-apple |archive-date=October 19, 2013 |url-status=live}}</ref> Microsoft's Online Services Division has been continuously loss-making since 2006 and in Q1 2011 it lost $726 million. This follows a loss of $2.5 billion for the year 2010.<ref>{{Cite web |url=https://techcrunch.com/2011/04/29/microsoft-internet-bloodbath |title=When Will Microsoft's Internet Bloodbath End? |publisher=Techcrunch.com |date=April 29, 2011 |access-date=May 11, 2011 |archive-url=https://web.archive.org/web/20110510073301/http://techcrunch.com/2011/04/29/microsoft-internet-bloodbath/ |archive-date=May 10, 2011 |url-status=live}}</ref> {| class="wikitable floatright" |+Sales by region (2023)<ref name="MarketScreener.com">{{Cite web |title=Microsoft Corporation: Shareholders Board Members Managers and Company Profile {{!}} US5949181045 {{!}} MarketScreener |url=https://www.marketscreener.com/quote/stock/MICROSOFT-CORPORATION-4835/company/ |access-date=2024-03-06 |website=www.marketscreener.com |language=en}}</ref> !Region !Sales in billion $ !share |- |United States |106.7 |50.4% |- |Other countries |105.2 |49.6% |} On July 20, 2012, Microsoft posted its first quarterly loss ever, despite earning record revenues for the quarter and fiscal year, with a net loss of $492 million due to a [[Write-off#Write-down|writedown]] related to the advertising company [[aQuantive]], which had been acquired for $6.2 billion back in 2007.<ref>{{Cite web |last=White |first=Martha |title=Microsoft reports first quarterly loss ever |url=http://marketday.msnbc.msn.com/_news/2012/07/19/12837611-microsoft-reports-first-quarterly-loss-ever?lite |access-date=July 20, 2012 |url-status=dead |archive-url=https://web.archive.org/web/20120720121702/http://marketday.msnbc.msn.com/_news/2012/07/19/12837611-microsoft-reports-first-quarterly-loss-ever?lite |archive-date=July 20, 2012}}</ref> As of January 2014, Microsoft's market capitalization stood at $314B,<ref>{{Cite web |title=Microsoft Overview |url=http://www.marketwatch.com/investing/stock/msft/ |publisher=Marketwatch |access-date=February 2, 2014 |archive-url=https://web.archive.org/web/20140202080137/http://www.marketwatch.com/investing/stock/msft |archive-date=February 2, 2014 |url-status=live}}</ref> making it the 8th-largest company in the world by market capitalization.<ref>{{Cite web |title=Global Top 100 Companies |url=http://www.pwc.com/gx/en/audit-services/capital-market/publications/top100-market-capitalisation.jhtml |publisher=PWC |access-date=February 2, 2014 |archive-url=https://web.archive.org/web/20140212041605/http://www.pwc.com/gx/en/audit-services/capital-market/publications/top100-market-capitalisation.jhtml |archive-date=February 12, 2014 |url-status=live}}</ref> On November 14, 2014, Microsoft overtook [[ExxonMobil]] to become the second most-valuable company by market capitalization, behind only [[Apple Inc.]] Its total market value was over $410B—with the stock price hitting $50.04 a share, the highest since early 2000.<ref>{{Cite web |title=Microsoft Surpasses Exxon as 2nd Most Valuable Co. |url=https://www.nytimes.com/aponline/2014/11/14/business/ap-us-microsoft-no-2.html |publisher=Associated Press |access-date=November 14, 2014 |archive-url=https://web.archive.org/web/20150502160225/http://www.nytimes.com/aponline/2014/11/14/business/ap-us-microsoft-no-2.html |archive-date=May 2, 2015 |url-status=live}}</ref> In 2015, [[Reuters]] reported that Microsoft Corp had earnings abroad of $76.4 billion which were untaxed by the [[Internal Revenue Service]]. Under U.S. law, corporations do not pay income tax on overseas profits until the profits are brought into the United States.<ref>{{Cite news |url=https://www.reuters.com/article/us-usa-tax-offshore-idUSBREA3729V20140409 |title=Untaxed U.S. corporate profits held overseas top $2.1 trillion: study |newspaper=Reuters |date=April 9, 2014 |access-date=July 1, 2017 |archive-url=https://web.archive.org/web/20151114065547/http://www.reuters.com/article/2014/04/09/us-usa-tax-offshore-idUSBREA3729V20140409 |archive-date=November 14, 2015 |url-status=live}}</ref> The key trends of Microsoft are (as at the financial year ending June 30):<ref>{{Cite web |title=Microsoft Fundamentalanalyse {{!}} KGV {{!}} Kennzahlen |url=https://www.boerse.de/fundamental-analyse/Microsoft-Aktie/US5949181045 |access-date=2024-04-09 |website=boerse.de |language=de}}</ref><ref>{{Cite web |title=Microsoft 2008-2016 |url=https://www.boerse.de/fundamental-analyse/Microsoft-Aktie/US5949181045 |url-status=dead |archive-url=https://web.archive.org/web/20170309232944/https://www.boerse.de/fundamental-analyse/Microsoft-Aktie/US5949181045 |archive-date=9 March 2017 |access-date=2024-04-09 |website=boerse.de |language=de}}</ref> {| class="wikitable float-left" style="text-align: center;" !Year !Revenue<br />in billion US$<ref name="microsoft.com">{{Cite web |title=FY23 Q4 - Press Releases - Investor Relations - Microsoft |url=https://www.microsoft.com/en-us/investor/earnings/fy-2023-q4/press-release-webcast |access-date=July 25, 2023 |website=www.microsoft.com}}</ref> !Net income<br />in billion US$<ref name="microsoft.com" /> !Total Assets<br />in billion US$<ref name="microsoft.com" /> !Employees<ref name="MicrosoftAnnualReports">{{Cite web |title=Microsoft Investor Relations—Annual Reports |url=https://www.microsoft.com/en-us/Investor/annual-reports.aspx |url-status=live |archive-url=https://web.archive.org/web/20181107145159/https://www.microsoft.com/en-us/Investor/annual-reports.aspx |archive-date=November 7, 2018 |access-date=November 7, 2018 |website=www.microsoft.com |language=en}}</ref> |- | 2005 | 39.7 | 12.2 | 70.8 | 61,000 |- | 2006 | 44.2 | 12.5 | 69.5 | 71,000 |- | 2007 | 51.1 | 14.0 | 63.1 | 79,000 |- | 2008 | 60.4 | 17.6 | 72.7 | 91,000 |- | 2009 | 58.4 | 14.5 | 77.8 | 93,000 |- | 2010 | 62.4 | 18.7 | 86.1 | 89,000 |- | 2011 | 69.9 | 23.1 | 108 | 90,000 |- | 2012 | 73.7 | 16.9 | 121 | 94,000 |- | 2013 | 77.8 | 21.8 | 142 | 99,000 |- | 2014 | 86.8 | 22.0 | 172 | 128,000 |- | 2015 | 93.5 | 12.1 | 174 | 118,000 |- | 2016 | 91.1 | 20.5 | 193 | 114,000 |- | 2017 | 96.5 | 21.2 | 250 | 124,000 |- | 2018 | 110 | 16.5 | 258 | 131,000 |- | 2019 | 125 | 39.2 | 286 | 144,106 |- |2020 |143 |44.2 |301 |163,000 |- |2021 |168 |61.2 |333 |181,000 |- |2022 |198 |72.7 |364 |221,000 |- |2023 |211 |72.3 |411 |238,000 |- |2024 |245 |88.1 |512 |228,000 |} In November 2018, the company won a $480 million military contract with the U.S. government to bring [[augmented reality]] (AR) headset technology into the weapon repertoires of American soldiers. The two-year contract may result in follow-on orders of more than 100,000 headsets, according to documentation describing the bidding process. One of the contract's tag lines for the augmented reality technology seems to be its ability to enable "25 bloodless battles before the 1st battle", suggesting that actual combat training is going to be an essential aspect of the augmented reality headset capabilities.<ref>{{Cite news |url=https://techcrunch.com/2018/11/28/microsoft-wins-480m-military-contract-to-outfit-soldiers-with-hololens-ar-tech/ |title=Microsoft wins $480M military contract to outfit soldiers with HoloLens AR tech |work=TechCrunch |access-date=November 29, 2018 |language=en-US |archive-url=https://web.archive.org/web/20181129072828/https://techcrunch.com/2018/11/28/microsoft-wins-480m-military-contract-to-outfit-soldiers-with-hololens-ar-tech/ |archive-date=November 29, 2018 |url-status=live}}</ref> ===Subsidiaries=== Microsoft is an international business. As such, it needs subsidiaries present in whatever national markets it chooses to harvest. An example is Microsoft Canada, which it established in 1985.<ref name="mcan">{{cite web |title=Welcome to Microsoft Canada |url=https://www.microsoft.com/en-ca/about/ |publisher=Microsoft |access-date=September 9, 2020}}</ref> Other countries have similar installations, to funnel profits back up to Redmond and to distribute the dividends to the holders of MSFT stock. === Ownership === The 10 largest shareholders of Microsoft in early 2024 were:<ref name="MarketScreener.com" /><ref>{{Cite web|url=https://www.techopedia.com/largest-microsoft-shareholders|title=Who Owns Microsoft? Top 10 Largest MSFT Shareholders - Techopedia|date=February 12, 2024 }}</ref> {| class="wikitable sortable" !Shareholder name !Percentage |- |[[The Vanguard Group]] |8.9% |- |[[BlackRock]] |5.6% |- |[[State Street Corporation]] |4.0% |- |[[Steve Ballmer]] |4.0% |- |[[Fidelity Investments]] |2.9% |- |[[Geode Capital Management]] |2.1% |- |[[T. Rowe Price|T. Rowe Price International]] |1.9% |- |[[Eaton Vance]] |1.7% |- |[[JP Morgan|JP Morgan Investment Management]] |1.6% |- |[[Bill Gates]] |1.4% |- |[[BlackRock|BlackRock Life]] |1.4% |- |Others |68.5% |} ===Marketing=== [[File:Windows 8 Launch Event in Akihabara, Tokyo.jpg|thumb|[[Windows 8]] Launch Event in [[Akihabara]], [[Tokyo]], on October 25, 2012]] In 2004, Microsoft commissioned research firms to do independent studies comparing the [[total cost of ownership]] (TCO) of [[Windows Server 2003]] to [[Linux]]; the firms concluded that companies found Windows easier to administrate than Linux, thus those using Windows would administrate faster resulting in lower costs for their company (i.e. lower TCO).<ref>{{Cite news |url=http://www.seattlepi.com/business/158237_msftresearch27.html |title=Studies on Linux help their patron: Microsoft |last=Bishop |first=Todd |work=Seattle Post-Intelligencer |date=January 27, 2004 |access-date=July 16, 2010 |archive-url=https://web.archive.org/web/20101205010533/http://www.seattlepi.com/business/158237_msftresearch27.html |archive-date=December 5, 2010 |url-status=live}}</ref> This spurred a wave of related studies; a study by the [[Yankee Group]] concluded that upgrading from one version of Windows Server to another costs a fraction of the [[switching barriers|switching costs]] from Windows Server to Linux, although companies surveyed noted the increased security and reliability of Linux servers and concern about being locked into using Microsoft products.<ref>{{Cite web |url=http://www.microsoft-watch.com/content/operating_systems/yankee_independently_pits_windows_tco_vs_linux_tco.html |archive-url=https://archive.today/20130104134612/http://www.microsoft-watch.com/content/operating_systems/yankee_independently_pits_windows_tco_vs_linux_tco.html |url-status=dead |archive-date=January 4, 2013 |title=Yankee Independently Pits Windows TCO vs. Linux TCO |last=Foley |first=Mary Jo |work=eWeek |date=March 24, 2004 |access-date=July 14, 2010}}</ref> Another study, released by the [[Open Source Development Labs]], claimed that the Microsoft studies were "simply outdated and one-sided" and their survey concluded that the TCO of Linux was lower due to Linux administrators managing more servers on average and other reasons.<ref>{{Cite web |url=http://www.vnunet.com/vnunet/news/2150210/linux-fans-hit-back-microsoft |title=Linux fans hit back at Microsoft TCO claims |last=Jaques |first=Robert |work=vnunet.com |date=February 13, 2006 |access-date=August 18, 2008 |url-status=dead |archive-url=https://web.archive.org/web/20080724013740/http://www.vnunet.com/vnunet/news/2150210/linux-fans-hit-back-microsoft |archive-date=July 24, 2008 }}</ref> As part of the "Get the Facts" campaign, Microsoft highlighted the [[.NET Framework]] trading platform that it had developed in partnership with [[Accenture]] for the [[London Stock Exchange]], claiming that it provided "[[High availability|five nines]]" reliability. After suffering extended downtime and unreliability<ref>{{cite news |url=https://www.telegraph.co.uk/finance/markets/4676369/Seven-hour-LSE-blackout-caused-by-double-glitch.html |newspaper=[[The Daily Telegraph|The Telegraph]] |title=Seven-hour LSE blackout caused by double glitch |first=Rowena |last=Mason |date=September 10, 2008 |location=London |access-date=April 3, 2018 |archive-url=https://web.archive.org/web/20171225225348/http://www.telegraph.co.uk/finance/markets/4676369/Seven-hour-LSE-blackout-caused-by-double-glitch.html |archive-date=December 25, 2017 |url-status=live}}</ref><ref>{{Cite news |work=[[BBC News Online]] |publisher=BBC |url=http://news.bbc.co.uk/1/hi/business/8380607.stm |title=London Stock Exchange trading hit by technical glitch |date=November 26, 2009 |access-date=September 30, 2010 |archive-url=https://web.archive.org/web/20130726144134/http://news.bbc.co.uk/1/hi/business/8380607.stm |archive-date=July 26, 2013 |url-status=live}}</ref> the London Stock Exchange announced in 2009 that it was planning to drop its Microsoft solution and switch to a Linux-based one in 2010.<ref>{{Cite web |publisher=ITWire |url=http://www.itwire.com/opinion-and-analysis/the-linux-distillery/28359-london-stock-exchange-gets-the-facts-and-dumps-windows-for-linux |title=London Stock Exchange gets the facts and dumps Windows for Linux |first=David M. |last=Williams |date=October 8, 2009 |access-date=September 30, 2010 |archive-url=https://web.archive.org/web/20110716005714/http://www.itwire.com/opinion-and-analysis/the-linux-distillery/28359-london-stock-exchange-gets-the-facts-and-dumps-windows-for-linux |archive-date=July 16, 2011 |url-status=live}}</ref><ref>{{Cite web |publisher=[[Slashdot]] |url=http://linux.slashdot.org/story/09/10/06/1742203/London-Stock-Exchange-Rejects-NET-For-Open-Source |title=London Stock Exchange Rejects .NET For Open Source |date=October 6, 2009 |access-date=September 30, 2010 |archive-url=https://web.archive.org/web/20110811012038/http://linux.slashdot.org/story/09/10/06/1742203/London-Stock-Exchange-Rejects-NET-For-Open-Source |archive-date=August 11, 2011 |url-status=live}}</ref> In 2012, Microsoft hired a political pollster named Mark Penn, whom ''The New York Times'' called "famous for bulldozing" his political opponents<ref>{{Cite web |url=https://www.nytimes.com/2012/12/15/technology/microsoft-battles-google-by-hiring-political-brawler-mark-penn.html?_r=0 |work=The New York Times |first1=Nick |last1=Wingfield |title=Microsoft Battles Google by Hiring Political Brawler Mark Penn |date=December 14, 2012 |access-date=February 19, 2017 |archive-url=https://web.archive.org/web/20170312135416/http://www.nytimes.com/2012/12/15/technology/microsoft-battles-google-by-hiring-political-brawler-mark-penn.html?_r=0 |archive-date=March 12, 2017 |url-status=live}}</ref> as Executive Vice-president, Advertising and Strategy. Penn created a series of negative advertisements targeting one of Microsoft's chief competitors, [[Google]]. The advertisements, called "[[Scroogled]]", attempted to make the case that Google is "screwing" consumers with search results rigged to favor Google's paid advertisers, that [[Gmail]] violates the privacy of its users to place ad results related to the content of their emails and shopping results, which favor Google products. Tech publications like [[TechCrunch]] were highly critical of the advertising campaign,<ref>{{cite news |url=https://techcrunch.com/2013/02/10/scroogled-why-so-negative-microsoft/ |title=Scroogled: Why So Negative, Microsoft? |work=TechCrunch |date=February 10, 2013 |access-date=April 18, 2014 |archive-url=https://web.archive.org/web/20140317120624/http://techcrunch.com/2013/02/10/scroogled-why-so-negative-microsoft/ |archive-date=March 17, 2014 |url-status=live}}</ref> while Google employees embraced it.<ref>{{Cite web |url=https://www.forbes.com/sites/kashmirhill/2013/11/21/googlers-love-microsofts-scroogled-gear-mug-and-shirts-sell-out/ |title=Googlers Love Microsoft's 'Scroogled' Gear. Mug and Shirts Sell Out. |first=Kashmir |last=Hill |date=November 21, 2013 |work=Forbes |access-date=September 5, 2017 |archive-url=https://web.archive.org/web/20170729205754/https://www.forbes.com/sites/kashmirhill/2013/11/21/googlers-love-microsofts-scroogled-gear-mug-and-shirts-sell-out/ |archive-date=July 29, 2017 |url-status=live}}</ref> ===Layoffs=== In July 2014, Microsoft announced plans to lay off 18,000 employees. Microsoft employed 127,104 people as of June 5, 2014, making this about a 14 percent reduction of its workforce as the biggest Microsoft layoff ever. This included 12,500 professional and factory personnel. Previously, Microsoft had eliminated 5,800 jobs in 2009 in line with the [[Great Recession]] of 2008–2017.<ref>{{Cite web |url=http://www.thejakartapost.com/news/2014/07/17/microsoft-cut-18000-jobs-over-next-year.html |title=Microsoft to cut up to 18,000 jobs over next year |date=July 17, 2014 |access-date=July 17, 2014 |archive-url=https://web.archive.org/web/20140727205526/http://www.thejakartapost.com/news/2014/07/17/microsoft-cut-18000-jobs-over-next-year.html |archive-date=July 27, 2014 |url-status=live}}</ref><ref>{{Cite web |title=Microsoft Layoffs Greater Than Expected: Up to 18,000 Jobs Being Cut |url=http://www.gamespot.com/articles/microsoft-layoffs-greater-than-expected-up-to-18-0/1100-6421171/ |publisher=Gamespot |access-date=August 10, 2014 |date=July 17, 2014 |archive-url=https://web.archive.org/web/20140722064908/http://www.gamespot.com/articles/microsoft-layoffs-greater-than-expected-up-to-18-0/1100-6421171/ |archive-date=July 22, 2014 |url-status=live}}</ref> In September 2014, Microsoft laid off 2,100 people, including 747 people in the Seattle–Redmond area, where the company is headquartered. The firings came as a second wave of the layoffs that were previously announced. This brought the total number to over 15,000 out of the 18,000 expected cuts.<ref>By Alex Wilhelm, TechCrunch. "[https://techcrunch.com/2014/09/18/microsoft-pulls-the-trigger-on-2100-more-layoffs/Microsoft Lays Off 2,100 More Employees] {{Webarchive|url=https://web.archive.org/web/20200804234324/https://techcrunch.com/2016/12/07/microsoft/ |date=August 4, 2020 }}." September 18, 2014. September 18, 2014.</ref> In October 2014, Microsoft revealed that it was almost done with eliminating 18,000 employees, which was its largest-ever layoff sweep.<ref>{{Cite web |last1=Perez |first1=Juan Carlos |title=Microsoft is 'almost' done with its largest-ever layoff sweep |url=http://www.computerworld.com/article/2840872/microsoft-is-almost-done-with-its-largest-ever-layoff-sweep.html |website=[[Computerworld]] |publisher=[[International Data Group]] |date=October 29, 2014 |access-date=November 10, 2014 |archive-url=https://web.archive.org/web/20141104135846/http://www.computerworld.com/article/2840872/microsoft-is-almost-done-with-its-largest-ever-layoff-sweep.html |archive-date=November 4, 2014 |url-status=live}}</ref> In July 2015, Microsoft announced another 7,800 job cuts in the next several months.<ref>{{Cite web |url=https://www.engadget.com/2015/07/08/microsoft-job-cuts-2015/ |title=Microsoft plans 7,800 layoffs, $7.8 billion Nokia write-down |first=Aaron |last=Souppouris |access-date=July 8, 2014 |archive-url=https://web.archive.org/web/20150711025745/http://www.engadget.com/2015/07/08/microsoft-job-cuts-2015/ |archive-date=July 11, 2015 |url-status=live}}</ref> In May 2016, Microsoft announced another 1,850 job cuts mostly in its Nokia mobile phone division. As a result, the company will record an impairment and restructuring charge of approximately $950 million, of which approximately $200 million will relate to severance payments.<ref>{{Cite press release |url=http://www.prnewswire.com/news-releases/microsoft-announces-streamlining-of-smartphone-hardware-business-300274560.html |title=Microsoft announces streamlining of smartphone hardware business |access-date=November 8, 2016 |archive-url=https://web.archive.org/web/20161202052847/http://www.prnewswire.com/news-releases/microsoft-announces-streamlining-of-smartphone-hardware-business-300274560.html |archive-date=December 2, 2016 |url-status=live}}</ref> Microsoft laid off 1,900 employees in its gaming division in January 2024. The layoffs primarily affected Activision Blizzard employees, but some Xbox and ZeniMax employees were also affected.<ref>{{Cite web|language=en|url=https://www.theverge.com/2024/1/25/24049050/microsoft-activision-blizzard-layoffs|title=Microsoft lays off 1,900 Activision Blizzard and Xbox employees|website=The Verge|date=January 25, 2024 |access-date=January 29, 2024|archive-date=January 25, 2024|archive-url=https://web.archive.org/web/20240125153932/https://www.theverge.com/2024/1/25/24049050/microsoft-activision-blizzard-layoffs}}</ref> Blizzard [[President (corporate title)|president]] Mike Ybarra and [[chief design officer]] [[Allen Adham]] also resigned.<ref>{{Cite web|language=en|url=https://www.nbcnews.com/tech/video-games/microsoft-lay-1900-employees-gaming-division-rcna135652|title=Microsoft to lay off 1,900 employees in its gaming division|website=NBC News|date=January 25, 2024 |access-date=January 29, 2024|archive-date=January 26, 2024|archive-url=https://web.archive.org/web/20240126082142/https://www.nbcnews.com/tech/video-games/microsoft-lay-1900-employees-gaming-division-rcna135652}}</ref> In May 2025, Microsoft announced that it is laying off more than 6,000 employees, around three percent of the company’s entire workforce.<ref>{{Cite web |last=Warren |first=Tom |date=2025-05-13 |title=Microsoft is laying off more than 6,000 employees |url=https://www.theverge.com/news/659401/microsoft-layoffs-three-percent-workforce |access-date=2025-05-17 |website=The Verge |language=en-US}}</ref> === Unions === Microsoft [[Microsoft and unions|recognizes seven trade unions]]{{efn|{{unbulleted list citebundle| [[Game Workers Alliance]] ([[Raven Software]])| Game Workers Alliance Albany| Activision Quality Assurance United-CWA| ZeniMax Workers United/CWA| OneBGS ([[Bethesda Game Studios]])| World of Warcraft| Texas Blizzard QA United-CWA }}}} representing 1,750 workers in the United States at its video game subsidiaries [[Activision Blizzard]] and [[ZeniMax Media]].<ref name="wow-union">{{Cite news |last=Eidelson |first=Josh |date=2024-07-24 |title=Microsoft's 'World of Warcraft' Gaming Staff Votes to Unionize |url=https://www.bloomberg.com/news/articles/2024-07-24/world-of-warcraft-unionizes-growing-foothold-at-microsoft-s-activision-blizzard |access-date=2024-07-24 |work=[[Bloomberg.com]] |language=en}}</ref> U.S. workers have been vocal in opposing military and law-enforcement [[List of United States defense contractors|contracts]] with Microsoft.<ref>{{Cite web |last=Birnbaum |first=Emily |date=2020-06-10 |title=Microsoft employees are pushing for change. Will it matter? |url=https://www.protocol.com/microsoft-employee-protest-police-contracts |archive-url=https://web.archive.org/web/20231002171913/https://www.protocol.com/microsoft-employee-protest-police-contracts |archive-date=2023-10-02 |access-date=2022-06-26 |website=[[Protocol (news)]] |language=en}}</ref> [[Bethesda Game Studios]] is unionized in [[Microsoft and unions#Canada|Canada]].<ref name="CWACanada2024">{{Cite web |date=2024-08-16 |title=Bethesda Game Studios Workers Win Labour Board Certification, Officially Join CWA Canada |url=https://cwacanada.ca/2024/08/16/bethesda-game-studios-workers-win-labour-board-certification-officially-join-cwa-canada/ |url-status=live |archive-url=https://web.archive.org/web/20240816130635/https://cwacanada.ca/2024/08/16/bethesda-game-studios-workers-win-labour-board-certification-officially-join-cwa-canada/ |archive-date=August 16, 2024 |access-date=2024-08-19 |website=[[Communications Workers of America|CWA Canada]] |language=en}}</ref> Microsoft [[Microsoft and unions#South Korea|South Korea]] recognizes its [[Trade union|union]] since 2017.<ref name="UNI Global Union">{{Cite web |title=Microsoft Korea Workers' Union votes to strike over wages and disregard for workers' sacrifice during pandemic |url=https://uniglobalunion.org/news/microsoft-korea-workers-union-votes-to-strike-over-wages-and-disregard-for-workers-sacrifice-during-pandemic/ |access-date=2022-06-26 |website=[[UNI Global Union]] |language=en-GB}}</ref><ref>{{Cite web |last=Kim |first=Jiseon |date=2017-10-17 |title=South Korea Oracle Establishes Its First Labor Union |url=https://english.etnews.com/20171017200001?SNS=00002 |access-date=2022-06-26 |website=ETNEWS |language=en}}</ref> [[Microsoft and unions#Germany|German]] employees have elected [[works council]]s since 1998.<ref>{{Cite web |last=Richter |first=Isabel |date=2014-09-01 |title=Microsoft Deutschland führt "Vertrauensarbeitsort" ein |trans-title=Microsoft Germany introduces "trusted workplace |url=https://news.microsoft.com/de-de/microsoft-deutschland-fhrt-vertrauensarbeitsort-ein/ |access-date=2023-09-22 |website=Microsoft Germany |language=de}}</ref> ===United States government=== Microsoft provides information about reported bugs in their software to intelligence agencies of the United States government, prior to the public release of the fix. A Microsoft spokesperson has stated that the corporation runs several programs that facilitate the sharing of such information with the U.S. government.<ref>{{Cite news |url=https://www.bloomberg.com/news/2013-06-14/u-s-agencies-said-to-swap-data-with-thousands-of-firms.html |title=U.S. Agencies Said to Swap Data With Thousands of Firms |work=Bloomberg |date=June 15, 2013 |access-date=March 10, 2017 |archive-url=https://web.archive.org/web/20150112075940/http://www.bloomberg.com/news/2013-06-14/u-s-agencies-said-to-swap-data-with-thousands-of-firms.html |archive-date=January 12, 2015 |url-status=live}}</ref> Following media reports about [[PRISM (surveillance program)|PRISM]], NSA's massive electronic [[Mass surveillance|surveillance program]], in May 2013, several technology companies were identified as participants, including Microsoft.<ref>{{Cite web |first=Ryan W. |last=Neal |title=Snowden Reveals Microsoft PRISM Cooperation: Helped NSA Decrypt Emails, Chats, Skype Conversations |url=http://www.ibtimes.com/snowden-reveals-microsoft-prism-cooperation-helped-nsa-decrypt-emails-chats-skype-conversations |work=[[International Business Times]] |date=July 11, 2013 |access-date=November 15, 2013 |archive-url=https://web.archive.org/web/20131203124001/http://www.ibtimes.com/snowden-reveals-microsoft-prism-cooperation-helped-nsa-decrypt-emails-chats-skype-conversations |archive-date=December 3, 2013 |url-status=live}}</ref> According to leaks of said program, Microsoft joined the PRISM program in 2007.<ref>{{Cite web |last1=Greenwald |first1=Glenn |last2=MacAskill |first2=Ewen |title=NSA Prism program taps into user data of Apple, Google and others |date=June 7, 2013 |work=[[The Guardian]] |url=https://www.theguardian.com/world/2013/jun/06/us-tech-giants-nsa-data |access-date=April 26, 2014 |archive-url=https://web.archive.org/web/20060818114650/http://www.guardian.co.uk/world/2013/jun/06/us-tech-giants-nsa-data |archive-date=August 18, 2006 |url-status=live}}</ref> However, in June 2013, an official statement from Microsoft flatly denied their participation in the program: {{Blockquote | style=font-size:100% | text="We provide customer data only when we receive a legally binding order or subpoena to do so, and never on a voluntary basis. In addition, we only ever comply with orders for requests about specific accounts or identifiers. If the government has a broader voluntary national security program to gather customer data, we don't participate in it."<ref>{{Cite web |last1=Johnson |first1=Kevin |last2=Martin |first2=Scott |last3=O'Donnell |first3=Jayne |last4=Winter |first4=Michael |title=Reports: NSA Siphons Data from 9 Major Net Firms |url=https://www.usatoday.com/story/news/2013/06/06/nsa-surveillance-internet-companies/2398345/ |access-date=June 6, 2013 |work=[[USA Today]] |date=June 15, 2013 |archive-url=https://web.archive.org/web/20130607113440/http://www.usatoday.com/story/news/2013/06/06/nsa-surveillance-internet-companies/2398345/ |archive-date=June 7, 2013 |url-status=live |df=mdy-all}}</ref>}} During the first six months of 2013, Microsoft received requests that affected between 15,000 and 15,999 accounts.<ref>{{Cite web |title=Microsoft, Facebook, Google and Yahoo release US surveillance requests |url=https://www.theguardian.com/world/2014/feb/03/microsoft-facebook-google-yahoo-fisa-surveillance-requests |work=[[The Guardian]] |date=February 3, 2014 |access-date=December 12, 2016 |archive-url=https://web.archive.org/web/20170106175615/https://www.theguardian.com/world/2014/feb/03/microsoft-facebook-google-yahoo-fisa-surveillance-requests |archive-date=January 6, 2017 |url-status=live}}</ref> In December 2013, the company made a statement to further emphasize the fact that they take their customers' privacy and [[Information privacy|data protection]] very seriously, even saying that "government snooping potentially now constitutes an '[[advanced persistent threat]],' alongside sophisticated malware and cyber attacks".<ref>{{Cite web |last1=Smith |first1=Brad |title=Protecting customer data from government snooping |url=http://blogs.microsoft.com/blog/2013/12/04/protecting-customer-data-from-government-snooping/ |website=The Official Microsoft Blog |access-date=January 1, 2015 |date=December 4, 2013 |archive-url=https://web.archive.org/web/20141224072247/http://blogs.microsoft.com/blog/2013/12/04/protecting-customer-data-from-government-snooping/ |archive-date=December 24, 2014 |url-status=live}}</ref> The statement also marked the beginning of three-part program to enhance Microsoft's encryption and transparency efforts. On July 1, 2014, as part of this program, they opened the first (of many) Microsoft Transparency Center, which provides "participating governments with the ability to review [[source code]] for our key products, assure themselves of their software integrity, and confirm there are no "[[Backdoor (computing)|back doors]]."<ref>{{Cite web |last1=Thomlinson |first1=Matt |title=Advancing our encryption and transparency efforts |url=http://blogs.microsoft.com/on-the-issues/2014/07/01/advancing-our-encryption-and-transparency-efforts/ |website=Microsoft on the Issues |access-date=January 1, 2015 |date=July 1, 2014 |archive-url=https://web.archive.org/web/20150101183639/http://blogs.microsoft.com/on-the-issues/2014/07/01/advancing-our-encryption-and-transparency-efforts/ |archive-date=January 1, 2015 |url-status=live}}</ref> Microsoft has also argued that the [[United States Congress]] should enact strong privacy regulations to protect consumer data.<ref>{{Cite web |last1=Heiner |first1=David |title=Request for Comment: Big Data and Consumer Privacy in the Internet Economy |url=http://www.ntia.doc.gov/files/ntia/microsoft.pdf |website=National Telecommunications and Information Administration |publisher=Microsoft |access-date=August 12, 2014 |archive-url=https://web.archive.org/web/20140814113914/http://www.ntia.doc.gov/files/ntia/microsoft.pdf |archive-date=August 14, 2014 |url-status=live}}</ref> In April 2016, the company [[Microsoft v. United States (2016)|sued the U.S. government]], argued that secrecy orders were preventing the company from disclosing warrants to customers in violation of the company's and customers' rights. Microsoft argued that it was unconstitutional for the government to indefinitely ban Microsoft from informing its users that the government was requesting their emails and other documents and that the [[Fourth Amendment to the United States Constitution|Fourth Amendment]] made it so people or businesses had the right to know if the government searches or seizes their property. On October 23, 2017, Microsoft said it would drop the lawsuit as a result of a policy change by the [[United States Department of Justice]] (DoJ). The DoJ had "changed data request rules on alerting the Internet users about agencies accessing their information." In 2022 Microsoft shared a $9 billion contract from the [[United States Department of Defense]] for cloud computing with Amazon, Google, and Oracle.<ref>{{cite news |last1=Farrell |first1=Maureen |title=Pentagon Divides Big Cloud-Computing Deal Among 4 Firms |url=https://www.nytimes.com/2022/12/07/business/pentagon-cloud-contracts-jwcc.html |work=The New York Times |date=7 December 2022}}</ref> === Security challenges === On a Friday afternoon in January 2024, Microsoft disclosed that a Russian state-sponsored group hacked into its corporate systems. The group, accessed "a very small percentage" of Microsoft corporate email accounts, which also included members of its senior leadership team and employees in its cybersecurity and legal teams.<ref>{{Cite web |title=Microsoft says Russian state-sponsored hackers spied on its executives |website=[[Reuters]] |url=https://www.reuters.com/technology/cybersecurity/microsoft-says-it-was-hacked-by-russian-state-sponsored-group-2024-01-19/}}</ref> Microsoft noted in a blog post that the attack might have been prevented if the accounts in question had enabled [[multi-factor authentication]], a defensive measure which is widely recommended in the industry, including by Microsoft itself.<ref>{{Cite web |last=Intelligence |first=Microsoft Threat |date=January 26, 2024 |title=Midnight Blizzard: Guidance for responders on nation-state attack |url=https://www.microsoft.com/en-us/security/blog/2024/01/25/midnight-blizzard-guidance-for-responders-on-nation-state-attack/ |access-date=February 10, 2024 |website=Microsoft Security Blog |language=en-US}}</ref>
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