Microsoft

Microsoft Corporation
	File:Microsoft logo.svg Logo used since 2012
Company type	Public
Industry	Technology
Founded	April 4, 1975; 51 years ago in Albuquerque, New Mexico, United States
Founder	Bill Gates, Paul Allen
Headquarters	Redmond, Washington, United States
Area served	Worldwide
Key people	Satya Nadella (CEO)
Products	Windows, Microsoft 365, Surface, Xbox, Azure, LinkedIn, Skype, Visual Studio, SQL Server, Bing, MSN, Outlook.com
Number of employees	(not specified)
Website	microsoft.com

Microsoft Corporation is a multinational technology enterprise based in Redmond, Washington, United States. Established in 1975 by Bill Gates and Paul Allen, the company initially gained recognition through software products such as Windows. Over time, Microsoft broadened its scope to include Internet services, cloud computing, video gaming, and additional fields. It holds the position of the world's largest software producer, ranks among the most valuable publicly traded American firms, and is recognized as one of the top global brands.

The company's origins trace back to creating and marketing BASIC interpreters for the Altair 8800. During the 1980s, Microsoft secured a dominant role in the personal computer operating system sector with MS-DOS, followed by the introduction of Windows. The 1986 initial public offering (IPO) generated substantial financial gains for both founders and staff. Under CEO Steve Ballmer from 2000 to 2014, Microsoft pursued significant acquisitions including Skype in 2011 and debuted its first proprietary PC series, the Surface, in 2012. Additionally, it expanded its hardware ventures through Microsoft Mobile in partnership with Nokia.

Since Satya Nadella assumed CEO duties in 2014, Microsoft has realigned its strategy toward cloud computing, exemplified by acquiring LinkedIn for $26.2 billion in 2016. Nadella further grew the gaming segment by founding the Microsoft Gaming division in 2022 and purchasing Activision Blizzard for $68.7 billion in 2023.

Microsoft leads the market for IBM PC-compatible operating systems and office productivity software with Windows and Microsoft 365, which encompasses Word, Excel, and PowerPoint. Its principal hardware products include Surface computers and Xbox gaming consoles, supported by services such as Xbox network. Consumer internet platforms include Bing search engine, MSN portal, Outlook.com email service, and the Microsoft Store. For enterprise clients, Microsoft offers Azure cloud infrastructure, SQL Server database management systems, and Visual Studio programming environments.

As part of the Big Five U.S. technology companies alongside Alphabet, Amazon, Apple, and Meta, Microsoft achieved a market valuation of $1 trillion in April 2019. Despite its extensive influence and expansion, the company has encountered criticism related to monopolistic behavior and software security vulnerabilities.

1972–1985: Formation

Bill Gates and Paul Allen, childhood acquaintances with programming expertise, initiated Traf-O-Data in 1972—a startup dedicated to analyzing traffic data. Gates enrolled at Harvard University, while Allen studied computer science at Washington State University before departing to join Honeywell.

Motivated by the January 1975 issue of Popular Electronics that showcased the Altair 8800, Allen suggested developing a BASIC interpreter tailored for that machine. They successfully demonstrated a functional prototype to Micro Instrumentation and Telemetry Systems (MITS), which agreed to distribute it under the name Altair BASIC. On April 4, 1975, Gates and Allen officially established Microsoft with Gates serving as CEO. The company opened its first overseas branch in Japan in 1977 through collaboration with ASCII Magazine. In January 1979, Microsoft moved its headquarters to Bellevue, Washington.

Entering the operating system arena in 1980 with Xenix—a Unix derivative—Microsoft's pivotal success came from MS-DOS. IBM contracted Microsoft in November 1980 to supply an OS for its IBM PC. Microsoft purchased 86-DOS from Seattle Computer Products and rebranded it as MS-DOS; IBM marketed this system as PC DOS. By retaining ownership of MS-DOS despite IBM’s BIOS copyright limitations, Microsoft secured dominance over PC operating systems. The company diversified its product range by launching the Microsoft Mouse in 1983 and establishing Microsoft Press for publishing activities.

Co-founder Paul Allen resigned from Microsoft in 1983 after receiving a Hodgkin's lymphoma diagnosis. Subsequently, he accused Gates of attempting to reduce his shareholding during his illness period. After departing from Microsoft, Allen expanded his investments into various industries including sports franchises, real estate development, neuroscience research, and private aerospace ventures.

1985–1994: Windows and Office

On November 20, 1985, Microsoft introduced Windows 1.0 as a graphical user interface extension for MS-DOS, even while collaborating with IBM on OS/2. The company's headquarters moved from Bellevue to Redmond, Washington on February 26, 1986. Shortly after, on March 13, Microsoft went public via an initial public offering (IPO) on NASDAQ, significantly increasing its stock value and creating numerous employee millionaires. By April 1987, Microsoft had distributed its OS/2 version to original equipment manufacturers (OEMs).

In 1990, the Federal Trade Commission launched an inquiry into Microsoft over potential collusion concerning its IBM alliance, beginning a series of legal disputes lasting more than ten years. Concurrently, Microsoft developed Windows NT, which debuted in July 1993 featuring a new modular kernel and a 32-bit Win32 API that facilitated easier transition from 16-bit Windows environments. This period marked the gradual unraveling of the OS/2 partnership.

Also in 1990, Microsoft unveiled the Microsoft Office suite, combining applications such as Microsoft Word and Microsoft Excel. On May 22 of the same year, the company released Windows 3.0, which offered enhanced graphical interface elements and optimized support for Intel 386 processors. Both Windows and Office quickly captured leading market positions in their categories.

On July 27, 1994, the U.S. Department of Justice's Antitrust Division submitted a competitive impact statement alleging that since 1988 Microsoft had engaged in anti-competitive per-processor licensing agreements with OEMs. These contracts required OEMs to pay royalties for every microprocessor sold regardless of whether Microsoft's operating system was installed, effectively discouraging the use of rival PC operating systems and strengthening Microsoft's market dominance.

1995–2007: Expansion into Web, Windows 95, XP, and Xbox

Following Bill Gates's 1995 "Internet Tidal Wave memo," Microsoft accelerated its involvement in networking and the World Wide Web, surpassing competitors such as Borland, WordPerfect, Novell, IBM, and Lotus to establish market leadership.

On August 24, 1995, Microsoft launched Windows 95, which introduced pre-emptive multitasking alongside a redesigned user interface featuring the Start menu and support for 32-bit applications via the Win32 API. The operating system came bundled with MSN as an online service and included Internet Explorer within the Windows 95 Plus! pack for OEMs. Supported by an extensive marketing campaign, Windows 95 achieved rapid commercial success.

In 1996, Microsoft collaborated with General Electric's NBC to create the MSNBC cable news channel broadcasting around the clock. That year also marked the release of Windows CE 1.0 tailored for devices with limited memory capacity.

Legal challenges intensified when the U.S. Justice Department filed motions in 1997 aiming to halt Microsoft's practice of bundling Internet Explorer with Windows, citing breaches of a prior agreement established in 1994. On April 3, 2000, in United States v. Microsoft Corp., the company was declared an "abusive monopoly," leading to a settlement finalized in 2004.

Bill Gates resigned as CEO on January 13, 2000, appointing Steve Ballmer—his longtime colleague and Microsoft veteran—as his successor while assuming the position of Chief Software Architect.

In October 1999, Microsoft co-established the Trusted Computing Platform Alliance to improve security measures and intellectual property safeguards; however, this initiative faced criticism due to its restrictive digital rights management policies.

Microsoft released Windows XP on October 25, 2001, consolidating its consumer and professional operating systems under the NT architecture. Later that year marked Microsoft's entry into the video game console industry with the debut of the Xbox, powered by a 733 MHz Intel Pentium III processor—positioning itself as a competitor against Sony and Nintendo.

In March 2004, the European Union imposed a €497 million ($613 million) fine on Microsoft for abusing its dominance in the Windows OS market and mandated versions of Windows XP without Windows Media Player (XP Home Edition N and Professional N).

November 2005 saw Microsoft's launch of its second console model—the Xbox 360—available in both basic ($299.99) and deluxe ($399.99) editions.

Building on its Xbox success, Microsoft introduced Zune digital media players in 2006 as successors to its Portable Media Center platform. By 2007, it led U.S. sales in wired keyboards (Natural Ergonomic Keyboard 4000), mice (IntelliMouse), and webcams (LifeCam). Additionally, Microsoft unveiled the Surface "digital table," later renamed Microsoft PixelSense.

2007–2011: Introduction of Microsoft Azure, Windows Vista, Windows 7, and Expansion of Microsoft Stores

January 2007 marked the launch of Windows Vista, which brought improved security features alongside the revamped Aero visual interface. At the same time, Microsoft Office 2007 introduced its innovative "Ribbon" user interface. These successful product releases helped Microsoft achieve record profits during 2007. Nevertheless, in 2008, the European Union imposed a €899 million ($1.4 billion) penalty on Microsoft due to antitrust concerns regarding server software pricing. Microsoft addressed these compliance issues while viewing the fines as resolution for past matters. That same year, the company established a dedicated multi-core division aimed at advancing server technology.

Co-founder Bill Gates stepped down from his role as Chief Software Architect in June 2008 but continued to serve as an advisor on critical projects. On October 27, 2008, Microsoft launched its cloud computing platform, the Azure Services Platform, marking a significant move into cloud services. In 2009, Microsoft revealed plans to open branded retail outlets; the inaugural store debuted in Scottsdale, Arizona, coinciding with the release of Windows 7, which emphasized enhancements in usability and performance over Vista.

While Microsoft experienced growth in various sectors, it struggled to gain traction in the fast-growing smartphone market. To counter this challenge, it replaced the outdated Windows Mobile with the new Windows Phone operating system in October 2010. This OS featured the streamlined "Metro" design language and aimed to provide a unified user experience across multiple devices. Strategic collaborations played a crucial role; in 2011, Microsoft partnered with Nokia to jointly develop Windows Phone while continuing original equipment manufacturer (OEM) agreements with firms such as HTC.

In March 2011, Microsoft joined forces with industry leaders including Google and Verizon to become a founding member of the Open Networking Foundation. This nonprofit organization promotes Software-Defined Networking (SDN) efforts to drive innovation within telecommunications and data center infrastructures through software-based approaches.

2011–2014: Launch of Windows 8/8.1, Xbox One, Outlook.com, and Surface Hardware

Following the rollout of Windows Phone, Microsoft undertook a rebranding initiative between 2011 and 2012 that embraced the Metro design language. In June 2011, Microsoft introduced Windows 8—a platform designed for both PCs and tablets—in Taipei. Developer and consumer preview versions were released prior to its public launch in May 2012. The company also entered hardware manufacturing with the unveiling of the Surface tablet on June 18. Shortly thereafter, on June 25, Microsoft acquired social networking service Yammer for $1.2 billion. To compete with Gmail, Outlook.com was launched on July 31. Additionally, September 4 saw the release of Windows Server 2012.

In July 2012, Microsoft sold its remaining 50% stake in MSNBC, thereby ending its joint venture with NBC. On October 1, it announced an updated MSN news service aligned with Windows 8’s imminent release later that month. Both Windows 8 and Surface were launched on October 26, followed by Windows Phone 8 three days afterward. To accommodate growing consumer demand during this period, Microsoft expanded its physical retail footprint by opening seasonal "holiday stores" along with additional permanent Microsoft Store locations across the United States. On March 29, 2013, it introduced a Patent Tracker tool to monitor intellectual property assets.

In August 2012, Microsoft collaborated with the New York City Police Department to develop the Domain Awareness System, a surveillance enhancement platform.

The Kinect motion-sensing technology received significant upgrades for the Xbox One console in 2013, featuring an ultra-wide-angle 1080p camera along with infrared sensors that enabled operation under low-light conditions. Patent filings suggested plans to integrate Kinect technology into interactive television experiences. However, on July 19, 2013, Microsoft's shares experienced their largest single-day decline since 2000 after disappointing sales figures for Windows 8 and Surface tablets resulted in a market value loss exceeding $32 billion.

In response to changes within its core PC segment, Microsoft reorganized its corporate structure in July 2013 into four main divisions: Operating Systems, Apps, Cloud Services, and Devices—eliminating previous units without conducting layoffs. On September 3 of that year, Microsoft agreed to acquire Nokia’s mobile device business for $7 billion shortly after appointing Amy Hood as Chief Financial Officer.

2014–2020: Windows 10, Microsoft Edge, and HoloLens

On February 4, 2014, Steve Ballmer resigned as CEO, with Satya Nadella, previously leading Microsoft's Cloud and Enterprise division, stepping into the role. John W. Thompson took over as chairman, succeeding Bill Gates, who continued to serve as a technology advisor. On April 25, 2014, Microsoft completed its $7.2 billion acquisition of Nokia Devices and Services, rebranding it as Microsoft Mobile Oy. Later that year, on September 15, Microsoft purchased Mojang, the studio behind Minecraft, for $2.5 billion. In June 2017, the company acquired Israeli cybersecurity firm Hexadite for $100 million.

Microsoft introduced the Surface Hub interactive whiteboard in January 2015. Windows 10 was officially released on July 29, 2015, followed by the launch of Windows Server 2016 in September 2016. During the first quarter of 2015, Microsoft ranked as the third-largest mobile phone manufacturer worldwide with sales of 33 million units (a market share of 7.2%), although only a small portion operated on Windows Phone OS. By January 2016, Microsoft’s share of the U.S. smartphone market had decreased to 2.7%. The company reported a $7.6 billion loss in its mobile phone division during mid-2015 and announced layoffs affecting 7,800 employees.

In March 2016, Microsoft consolidated its PC and Xbox divisions under Phil Spencer’s leadership to prioritize Universal Windows Platform (UWP) applications for gaming. January 2017 saw the launch of Intune for Education, a cloud-based device management solution aimed at schools. That year also involved workforce reductions totaling 1,850 jobs alongside a $950 million impairment charge.

Azure Information Protection was unveiled in June 2016 to assist businesses in safeguarding data across devices and servers. In November of the same year, Microsoft became a Platinum member of the Linux Foundation, signaling a notable shift from its earlier stance on open source technologies.

In January 2018, Microsoft released patches for Windows 10 addressing Intel’s Meltdown vulnerability but encountered problems with Azure virtual machines. PowerShell Core 6.0 debuted with support for macOS and Linux platforms. Support for Windows Phone officially ended in February with the cessation of firmware updates. The Windows 10 S edition was rebranded in March to function as a mode within Windows rather than an independent operating system.

April 2018 featured the release of Windows File Manager’s source code under the MIT License and the announcement of Azure Sphere—a Linux-based security platform. Microsoft also collaborated with U.S. intelligence agencies on "Azure Government," a cloud service designed for defense-related projects. In June, Microsoft revealed plans to acquire GitHub for $7.5 billion.

July brought the launch of Surface Go and transitioned Microsoft Teams into a free service model. August introduced cybersecurity initiatives such as AccountGuard and Defending Democracy programs alongside support for Snapdragon 850 processors enabling Windows on ARM devices.

In August 2018, Toyota Tsusho partnered with Microsoft to develop AI-driven fish farming solutions utilizing Azure Machine Learning and IoT Hub technologies.

September marked the end of Skype Classic; October saw Microsoft join the Open Invention Network despite holding over 60,000 patents. November included a $500 million contract to deliver 100,000 HoloLens headsets to the U.S. military to enhance battlefield operations and introduced Azure Multi-Factor Authentication.

December featured Project Mu—an open-source UEFI core designed to facilitate Firmware as a Service—and open-source releases of Windows Forms and WPF frameworks. Additionally, Microsoft phased out its legacy Edge browser in favor of a Chromium-based version.

In February 2019, Microsoft expanded AccountGuard cybersecurity services into twelve European countries to protect political organizations from cyberattacks. That same month witnessed employee protests opposing Microsoft's $480 million contract to develop augmented reality headsets for the U.S. Army due to ethical concerns about war profiteering.

2020–present: Strategic Acquisitions, Xbox Series X/S Launch, and Windows 11

On March 26, 2020, Microsoft revealed its plan to acquire Affirmed Networks for roughly $1.35 billion, aiming to strengthen its global 5G infrastructure. Amid the COVID-19 crisis, the company temporarily shuttered all physical retail locations indefinitely. Later that year, on July 22, Microsoft declared the shutdown of its Mixer streaming platform, transitioning its creators to Facebook Gaming.

During mid-2020, Microsoft entered negotiations to purchase TikTok’s U.S. operations following the Trump administration’s directive for ByteDance divestment; however, regulatory challenges impeded progress. In August 2020, Microsoft paused its xCloud game streaming trials on iOS due to Apple’s restrictive app policies.

On September 21, 2020, Microsoft announced plans to buy ZeniMax Media—the parent company of Bethesda Softworks—for approximately $7.5 billion; this acquisition finalized in March 2021 at $8.1 billion, significantly expanding Xbox Game Studios’ portfolio.

In September 2020, Microsoft secured an exclusive license for OpenAI’s GPT-3 language model, enhancing its artificial intelligence capabilities. The company launched the Xbox Series X and Series S consoles on November 10, 2020.

February 2021 marked the public preview debut of Azure Quantum, offering access to multiple quantum computing platforms and reinforcing Microsoft’s leadership in cloud innovation. In April of the same year, Microsoft announced a $16 billion acquisition of Nuance Communications to advance healthcare AI technologies; this transaction completed in March 2022.

Microsoft’s market valuation approached $2 trillion in 2021, propelled by robust growth in cloud services and gaming amid surging remote work and educational demands. Windows 11 was unveiled on June 24, 2021, with a public release on October 5.

In September 2021, Microsoft expanded its educational technology portfolio by acquiring TakeLessons and enhanced video editing tools through the purchase of Clipchamp. October saw the introduction of end-to-end encryption for Microsoft Teams calls alongside acquiring Ally.io to elevate employee experience solutions.

January 2022 featured Microsoft’s landmark $68.7 billion all-cash acquisition of Activision Blizzard, incorporating major franchises such as Warcraft and Call of Duty into its ecosystem and aiming to bolster its metaverse ambitions. Phil Spencer was appointed CEO of the newly formed Microsoft Gaming division overseeing Xbox Game Studios, ZeniMax Media, and Activision Blizzard. This deal closed on October 13, 2023.

December 2022 witnessed a strategic alliance with London Stock Exchange Group involving a near-4% equity stake purchase coupled with a decade-long Azure cloud services agreement.

In January 2023, CEO Satya Nadella announced workforce reductions totaling around 10,000 employees as part of cost optimization efforts. Shortly afterward, Microsoft secured a multi-billion-dollar investment agreement with OpenAI’s ChatGPT developer.

June 2023 introduced Azure Quantum Elements for molecular simulations integrating AI with quantum computing powered by GPT-4-enabled Copilot tools. In November 2023, Microsoft unveiled custom AI hardware: Maia chips designed for large language models and Cobalt CPUs tailored for Azure cloud operations.

Later that month, Satya Nadella disclosed that former OpenAI CEO Sam Altman and president Greg Brockman would join Microsoft to spearhead advanced AI research initiatives; however, both executives were soon reinstated at OpenAI following internal controversies.

March 2024 involved an acqui-hire of Inflection AI’s team valued at $650 million to enhance Microsoft’s AI research under new leadership from cofounder Mustafa Suleyman.

By January 2024, Microsoft had become the world’s most valuable publicly traded company while launching Copilot Pro AI subscriptions targeting small business markets.

April 2024 included a $1.5 billion investment in Emirati AI firm G42 integrating Azure services alongside a $1.7 billion initiative focused on AI and cloud infrastructure development in Indonesia.

May 2024 saw a $3.3 billion commitment toward establishing an AI innovation center in southeast Wisconsin featuring new data center construction and partnerships with UW-Milwaukee for workforce development.

In June 2024, approximately 1,000 employees were laid off from mixed reality and Azure cloud teams amid restructuring plans that included building a hyperscale data center near Leeds.

Reports from July 2024 indicated layoffs within Microsoft's diversity, equity, and inclusion (DEI) team as part of broader organizational realignment.

On July 19, 2024, a global IT outage caused by a faulty CrowdStrike software update disrupted Microsoft services worldwide across multiple industries; although the root cause was resolved promptly, some applications experienced lingering effects.

September 2024 brought a $30 billion Global AI Infrastructure Investment Partnership with BlackRock aimed at expanding U.S.-based AI data centers alongside reintroducing the privacy-focused Recall screenshot tool as an opt-in feature after regulatory review.

In February 2025, Microsoft announced plans to discontinue Skype by May 5 to concentrate resources on Teams without resulting in job losses. The company commemorated its fiftieth anniversary in April.

By May 30, 2025, Microsoft's Russian branch prepared for bankruptcy filings due to operational difficulties stemming from geopolitical tensions and local regulations favoring domestic software providers.

On July 2, 2025, Microsoft declared workforce reductions nearing 9,000 positions (approximately four percent) amid significant investments in AI infrastructure coupled with management restructuring aimed at operational efficiency.

Corporate affairs

In the 2022 Fortune 500 ranking of the largest U.S. companies by revenue, Microsoft was positioned at No. 14. According to the Forbes Global 2000 list for the same year, it held the title of the world's top software producer by revenue. In 2018, Microsoft became the most valuable publicly listed company worldwide, a status it has alternated with Apple since then. By April 2019, Microsoft joined Apple and Amazon as the third American company to achieve a market capitalization of one trillion dollars. As of 2024, it ranks third in global brand valuation and stands as one of only two U.S.-based corporations with a AAA credit rating.

Board of directors

Microsoft’s board primarily comprises independent directors, aligning with common governance practices for public companies. As of December 2023, the board members include CEO 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.

The board is subject to annual election by shareholders and functions through four committees: Audit (overseeing accounting and financial reporting), Compensation (handling executive remuneration), Governance and Nominating (managing board nominations and corporate governance), and Regulatory and Public Policy (addressing legal matters including antitrust, privacy, artificial intelligence, and sustainability).

Founder Bill Gates stepped down from the board in March 2020 to concentrate on philanthropic efforts—a significant leadership change within the tech sector. In January 2022, Microsoft’s board launched an external investigation into its policies on sexual harassment and gender discrimination following allegations involving Gates and other executives.

Chief executives

Bill Gates (1975–2000)
Steve Ballmer (2000–2014)
Satya Nadella (2014–present)

Financial

Microsoft’s initial public offering in 1986 opened at $21 per share and closed at $27.75 on the first day; after nine stock splits, the equivalent IPO price adjusts to roughly nine cents per share. The stock reached its peak around 1999 at approximately $119 when adjusted for splits. Dividend payments commenced in 2003 at eight cents per share and transitioned to quarterly distributions by 2005, including a special dividend of $3 per share during the second quarter. Despite dividend increases over time, the share price remained relatively stable for several years.

Both Standard & Poor's and Moody's Investors Service have awarded Microsoft their highest AAA credit rating. In February 2011, Microsoft issued $2.25 billion in corporate bonds at favorable interest rates. Nevertheless, during Q1 2011 Apple overtook Microsoft in profits and revenues due to a slowdown in PC sales and losses within Microsoft's Online Services Division—encompassing Bing—which posted a $726 million loss in Q1 2011 and $2.5 billion for fiscal year 2010.

Sales by region (2023)
Region	Sales in billion $	Share
United States	106.7	50.4%
Other countries	105.2	49.6%

On July 20, 2012, Microsoft announced its first-ever quarterly net loss of $492 million resulting from a writedown related to its acquisition of advertising firm aQuantive for $6.2 billion in 2007. By January 2014, Microsoft’s market capitalization had grown to $314 billion, ranking it as the world’s eighth-largest company by market value. On November 14, 2014, Microsoft overtook ExxonMobil to become the second most valuable company globally after Apple Inc., with a market value surpassing $410 billion.

In 2015, Reuters reported that Microsoft held $76.4 billion in untaxed earnings overseas; under U.S. tax law, taxes on foreign profits are deferred until those funds are repatriated.

Key financial indicators for fiscal years ending June 30:

Year	Revenue (billion US$)	Net income (billion US$)	Total assets (billion US$)	Employees
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

Year	Revenue (billion US$)	Net income (billion US$)	Total assets (billion US$)	Employees

"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, Microsoft secured a $480 million contract with the U.S. military to provide augmented reality headsets for soldiers—a key move into defense technology with potential orders exceeding 100,000 units—highlighting the company's commitment to innovation-led growth and market diversification through cutting-edge products and services.

Subsidiaries

Microsoft maintains a global presence through subsidiaries strategically positioned in important markets to bolster its operational framework and channel earnings back to its Redmond headquarters. For instance, Microsoft Canada, founded in 1985, serves the Canadian market while generating returns for shareholders.

Ownership

By early 2024, Microsoft’s top ten shareholders consisted mainly of prominent institutional investors alongside company founders:

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 International	1.9%
Eaton Vance	1.7%
JP Morgan Investment Management	1.6%
Bill Gates	1.4%
Others	68.5%

Marketing

Microsoft’s promotional efforts have focused on emphasizing the simplicity of managing its products and their cost-effectiveness relative to alternatives such as Linux. This approach was supported by commissioned research demonstrating a reduced total cost of ownership (TCO) for Windows Server upgrades. Nevertheless, some industry advocates contested these results, highlighting Linux’s strengths in security and server management efficiency.

Additionally, Microsoft highlighted its collaboration with Accenture in developing the .NET Framework trading platform for the London Stock Exchange, promoting its high reliability. However, after experiencing prolonged outages, the Exchange announced plans in 2010 to transition to a Linux-based platform, underscoring challenges related to product dependability that affected market trust.

In 2012, Mark Penn was appointed Executive Vice President of Advertising and Strategy to strengthen Microsoft’s competitive stance against Google. Penn spearheaded the "Scroogled" campaign, which criticized Google’s advertising tactics and privacy policies with the intent of shaping consumer opinion. Although the campaign faced criticism from technology media outlets, it reflected Microsoft’s assertive marketing tactics aimed at safeguarding its market position against major competitors.

Layoffs

In July 2014, Microsoft revealed intentions to reduce its workforce by 18,000 employees—approximately 14% of its then 127,104 staff—marking the largest layoffs in its history. This included cuts of 12,500 roles across professional and manufacturing sectors. Previously in 2009, the company had eliminated 5,800 jobs due to economic pressures from the Great Recession. By September 2014, more than 15,000 layoffs had been completed, including 747 positions at the Seattle–Redmond headquarters; by October, this substantial downsizing was nearly finalized.

Microsoft announced another round of job reductions totaling 7,800 roles over several months in July 2015. In May 2016, an additional 1,850 positions were cut primarily within the Nokia mobile division, accompanied by a $950 million impairment and restructuring expense.

In January 2024, Microsoft laid off roughly 1,900 employees within its gaming segment, predominantly impacting staff at Activision Blizzard along with some Xbox and ZeniMax personnel. These changes coincided with the departures of Blizzard president Mike Ybarra and chief design officer Allen Adham.

In May 2025, Microsoft disclosed plans to eliminate over 6,000 jobs—about 3% of its overall workforce—and two months later in July 2025 proceeded with approximately 9,000 cuts spanning several divisions including Xbox; notably, 830 of these were at its Redmond headquarters. Concurrently, Microsoft ceased operations in Pakistan after a quarter-century presence, attributing this decision to a strategic pivot toward cloud-centric business models and challenges within the local market environment.

Labor Unions

Microsoft acknowledges the representation of 1,750 U.S.-based employees at its gaming divisions, Activision Blizzard and ZeniMax Media, by seven distinct trade unions. Among these are the Game Workers Alliance and Activision Quality Assurance United-CWA. Within the United States, staff have expressed opposition to Microsoft’s contracts involving military and law enforcement agencies. In Canada, Bethesda Game Studios operates under union representation, while since 2017, Microsoft’s South Korean branch has formally recognized a labor union. Additionally, German personnel have elected works councils since 1998, illustrating the company’s engagement with organized labor across its international operations.

Relationship with the United States Government

Microsoft collaborates with U.S. intelligence agencies by sharing information concerning discovered software vulnerabilities prior to public patch releases through multiple established programs. After the 2013 disclosure of the PRISM surveillance program, Microsoft was identified as a participant dating back to 2007; however, the company denied voluntary involvement, asserting compliance only with legally mandated requests tied to specific accounts.

In early 2013, Microsoft reported receiving government requests impacting between 15,000 and 15,999 accounts. By December of that year, the company reaffirmed its dedication to protecting customer privacy, categorizing government surveillance as an "advanced persistent threat" comparable to malware. This stance prompted a three-pronged strategy focused on enhancing encryption and transparency. A key element was the inauguration of Microsoft’s first Transparency Center in July 2014, enabling governmental bodies to inspect source code for assurance that software integrity is maintained without backdoors. Furthermore, Microsoft has advocated for stronger privacy legislation in the U.S. aimed at safeguarding consumer data.

In April 2016, Microsoft initiated legal action against the U.S. government contesting gag orders that barred disclosure of warrant details to customers, arguing such restrictions infringed upon Fourth Amendment rights. The lawsuit was withdrawn in October 2017 following revisions in Department of Justice policies regarding notification of data requests.

In 2022, Microsoft secured a portion of a $9 billion cloud computing contract awarded by the U.S. Department of Defense alongside Amazon, Google, and Oracle, thereby solidifying its role in government cloud infrastructure services.

Cybersecurity Incidents

In January 2024, Microsoft revealed that a cyberattack by a Russian state-sponsored entity compromised a limited number of corporate email accounts, including those belonging to senior executives and cybersecurity staff. The company highlighted that enabling multi-factor authentication—a widely endorsed security protocol—could have potentially thwarted this breach.

Organizational Culture

Microsoft fosters its developer ecosystem through the Microsoft Developer Network (MSDN), which provides subscriptions granting access to pre-release software versions. It has also established community platforms such as Channel 9 and On10.net that offer forums and videocasts for user interaction. Technical assistance is delivered via moderated online newsgroups where outstanding contributors receive recognition as Microsoft Most Valuable Professional (MVP).

The company embraces the philosophy of "eating your own dog food," meaning it internally utilizes beta software to test products under real-world conditions. Employee culture includes unique internal expressions like FYIFV ("Fuck You, I'm Fully Vested").

Microsoft actively contests the U.S. H-1B visa cap due to recruitment challenges for skilled professionals; founder Bill Gates has publicly supported eliminating this limit to foster business expansion. Opponents contend such changes might adversely affect domestic employment opportunities.

Between 2005 and 2010, Microsoft earned a perfect score on the Human Rights Campaign Corporate Equality Index for its policies supporting LGBT employees, reflecting progressive workplace inclusivity.

In 2018, Microsoft extended its subcontractor policies to mandate 12 weeks of paid parental leave, building upon its earlier 2015 initiative offering up to 20 weeks for birth parents. This policy enhancement underscores the company's ongoing commitment to employee well-being and maintaining competitive talent retention strategies.

Environment

In 2011, Greenpeace evaluated leading cloud computing providers based on the energy sources powering their data centers, drawing attention to the sector's rising electricity demands. The organization encouraged firms such as Microsoft to transition their cloud infrastructure toward renewable energy. By 2013, Microsoft had pledged to procure wind-generated electricity for a data center in Texas, aligning with its strategy to enhance environmental sustainability.

Microsoft was placed 17th in Greenpeace's Guide to Greener Electronics (16th Edition), which assessed companies on their approaches to managing toxic substances and addressing climate change. Although the company targeted the elimination of brominated flame retardants and phthalates by 2012, its stance on removing PVC remained ambiguous, with no products entirely free of PVC or BFRs as of 2011.

The U.S. campus earned LEED silver certification in 2008, and by 2005, over 2,000 solar panels were installed at its Silicon Valley location, supplying roughly 15% of its power requirements. Microsoft promotes eco-friendly commuting through its "Connector" bus service and hybrid shuttle vehicles, which complement local public transit systems while encouraging alternative travel methods.

In 2011, the Great Place to Work Institute recognized Microsoft as the top multinational employer worldwide. In January 2020, the company unveiled a bold initiative to achieve carbon negativity by 2030 and to eliminate all carbon emissions produced since its inception in 1975. Later that year, Microsoft institutionalized remote work policies and joined Europe's Climate Neutral Data Centre Pact, investing in direct air capture technologies via Climeworks and forming partnerships focused on carbon sequestration.

Microsoft earned the EPA Green Power Leadership Award in 2021 for maintaining 100% renewable energy usage since 2014. In September 2023, it acquired $200 million worth of carbon credits from Heirloom Carbon, a company that converts CO₂ into limestone for durable storage or incorporation into concrete.

By mid-2024, Microsoft had invested over $760 million through its Climate Innovation Fund, supporting more than five million metric tonnes of carbon removal and exceeding 34 megawatts of renewable energy capacity. Despite these efforts, Scope 3 emissions increased by 31% compared to the 2020 baseline, resulting in a total emissions rise of 29% in 2023. That same year, Microsoft's electricity consumption reached approximately 24 terawatt-hours—surpassing the annual usage of nations such as Iceland and Ghana.

Headquarters

Microsoft's main corporate headquarters is situated at One Microsoft Way in Redmond, Washington, commonly referred to as the Microsoft Redmond campus. Established shortly before the company's initial public offering in 1986, this campus has grown to encompass more than 8 million square feet (around 750,000 square meters) of office space and accommodates between 30,000 and 40,000 employees. Additional facilities are located in Bellevue and Issaquah, Washington, contributing to a global workforce numbering approximately 90,000. The Mountain View campus in California—acquired in 2016—is undergoing expansion plans aiming for a 25% increase in size. On the East Coast, Microsoft operates a headquarters in Charlotte, North Carolina.

In April 2024, Microsoft announced the opening of a new artificial intelligence center in Paddington, London. This hub will be led by Jordan Hoffman, formerly affiliated with DeepMind and Inflection AI, underscoring Microsoft's commitment to advancing AI research and expanding its international presence.

Flagship stores

On October 26, 2015, Microsoft inaugurated a flagship retail outlet located on Fifth Avenue in New York City. This five-level, 22,270-square-foot store was established to strengthen the company's strategy of deepening customer interaction and increasing brand visibility. The opening coincided with the launch of the Surface Book and Surface Pro 4 devices. Subsequently, on November 12, 2015, Microsoft expanded its global retail presence by unveiling a second flagship store situated in Sydney’s Pitt Street Mall, targeting key international markets.

Logo

The "Pac-Man Logo," created by Scott Baker, was adopted by Microsoft on February 26, 1987. This design incorporates a slash between the letters o and s to highlight the "soft" portion of the name while suggesting movement and dynamism. An internal initiative to maintain the former green logo featuring a stylized O known as the "blibbet" was eventually abandoned.

The slogan "Your potential. Our passion." evolved from an earlier tagline introduced in 2008 and replaced the previous U.S. campaign phrase "Where do you want to go today?" that had been used since 2002. In 2010, during the Microsoft Global Exchange conference, the company presented a new tagline: "Be What's Next." The "Pac-Man" logo stood as Microsoft's longest-running emblem, remaining in use for over a quarter-century.

On August 23, 2012, Microsoft revealed a refreshed corporate logo aligned with the launch of its 23rd retail store in Boston. This change reflected a strategic pivot toward a tile-based modern design consistent with Windows Phone, Xbox 360, Windows 8, and Office Suites interfaces. The updated logo consists of four colored squares symbolizing Microsoft's primary products: blue for Windows, orange for Office, green for Xbox, and yellow for Bing. This transformation represents Microsoft’s shift in business focus and evolving market approach.

Sponsorship

Microsoft has supported Finland’s national basketball team during EuroBasket 2015, served as a principal sponsor of Toyota Gazoo Racing WRT from 2017 to 2020, and backed the Renault F1 Team between 2016 and 2020, thereby boosting its brand exposure within international motorsports arenas.

Philanthropy

In 2015, Microsoft Philanthropies was established to broaden global access to technology. Key initiatives include providing cloud computing resources to researchers and nonprofit organizations, enhancing broadband connectivity worldwide, investing in computer science education through YouthSpark, supporting U.S. technology education from early childhood through high school levels, and assisting organizations dedicated to child welfare and refugee relief.

During the COVID-19 pandemic, Microsoft’s president, Brad Smith, announced contributions of personal protective equipment to Seattle authorities as part of the company's commitment to corporate social responsibility during the global health crisis.

Following the Russian invasion of Ukraine, Microsoft actively tracked cyberattacks orchestrated by Russian state-sponsored hackers targeting governments, think tanks, businesses, and humanitarian groups across 42 nations supporting Kyiv. This underscored the company’s involvement in cybersecurity efforts and managing geopolitical risks.

Furthermore, Microsoft's AI for Accessibility grant program finances worldwide projects aimed at improving technology accessibility for individuals with disabilities. Beneficiaries in the Asia-Pacific region include Sri Lanka’s IT company Fortude, Thailand’s Vulcan Coalition, and Indonesia’s Kerjabilitas organization—demonstrating Microsoft’s dedication to fostering inclusive technological innovation.

Controversies

Microsoft has been subject to criticism concerning the durability, security, and user-friendliness of its software offerings, alongside its labor practices. These include reliance on long-term "permatemp" workers who lack benefits and retention strategies aimed at discouraging staff turnover. The company has earned the label "Velvet Sweatshop," highlighting worries about excessive employee workloads despite providing extensive workplace amenities.

In 2020, an Irish subsidiary declared profits amounting to £220 billion but avoided paying corporate taxes by being tax resident in Bermuda through 'Microsoft Round Island One,' which manages global license fee collections. UK Member of Parliament Dame Margaret Hodge denounced this as tax avoidance. Investigations by ProPublica uncovered that Microsoft shifted over $39 billion of U.S. profits to Puerto Rico, resulting in an effective tax rate close to zero. The company has vigorously contested IRS audits, culminating in a 2023 IRS claim asserting Microsoft owes $28.9 billion plus penalties for profit misallocation.

The U.S. Department of Justice identified the phrase "Embrace, extend, and extinguish" (EEE) as Microsoft's tactic to enter markets with open standards, introduce proprietary modifications, and then leverage these to disadvantage rivals—illustrating allegations of anticompetitive conduct and vendor lock-in.

Microsoft was the initial company revealed in the 2013 NSA PRISM surveillance program disclosures, which allowed government agencies access to user data without warrants. While the company denied direct involvement, government sources confirmed participation.

Civil rights activist Jesse Jackson has called on Microsoft to enhance diversity efforts, commending the company's inclusion of women on its board in 2015.

In 2020, Salesforce lodged a complaint with European regulators over Microsoft's practice of integrating Teams within Office 365. By 2023, stalled negotiations prompted an EU antitrust inquiry. In June 2024, the European Commission issued a statement of objections accusing Microsoft of abusing its market dominance by bundling Teams with Office software since 2019, thereby restricting competition despite Microsoft's attempts at unbundling. Teams’ daily users increased from 2 million in 2017 to 300 million by 2023. Microsoft has faced EU fines exceeding €2 billion for comparable antitrust violations.

In October 2024, Microsoft terminated two engineers who organized an unauthorized vigil at its Redmond campus protesting the company's involvement in Israeli government technology amid the Gaza conflict. Subsequent demonstrations criticized Microsoft's role in Israel’s military operations; the Boycott, Divestment and Sanctions movement designated Microsoft as a key boycott target due to its partnership with Israel’s regime. Reports surfaced that Israeli forces employed Microsoft AI tools during Gaza operations; while Microsoft confirmed providing such services, it denied their use in alleged war crimes.

In November 2024, the U.S. Federal Trade Commission initiated an antitrust investigation into Microsoft’s cloud computing, artificial intelligence, and cybersecurity business practices. The inquiry focuses on product bundling and AI investments stemming from its partnership with OpenAI. This investigation forms part of broader regulatory efforts under FTC chair Lina Khan targeting major technology companies.

In June 2025, Microsoft complied with a Trump administration executive order by suspending the email account of an International Criminal Court prosecutor investigating Israel for war crimes. A subsequent UN expert report identified Microsoft as central to Israel's surveillance infrastructure supporting military actions in Gaza.

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