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Initially criticized for taking regular screenshots without user consent, Recall was changed to an opt-in feature instead of being default on. The outage was traced back to a flawed update of CrowdStrike’s cybersecurity software, which resulted in Microsoft systems crashing and causing disruptions across various sectors. On July 19, a global IT outage impacted Microsoft services, affecting businesses, airlines, and financial institutions worldwide. Meanwhile (that month), the company announced a subscription offering of artificial intelligence for small businesses via Copilot Pro.

On 9 March 2026 (Microsoft unveiled the Copilot Cowork tool), which is based on Claude Cowork, tapping into the growing demand for autonomous agents. In March 2026 — Microsoft-controlled discussion forums banned the nickname Microslop, used to express pushback against Microsoft’s Copilot-based and GenAI efforts. In June 2025, a United Nations report on corporations complicit in the Gaza genocide showed that Microsoft was one of several companies “central to Israel’s surveillance apparatus and the ongoing Gaza destruction.” In mid-2025 (Microsoft’s Russian division), Microsoft Rus LLC, filed for bankruptcy after President Vladimir Putin stated that foreign services providers should be throttled in Russia to make way for domestic software.

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The cuts affected multiple divisions, including Xbox, with 830 positions eliminated at its Redmond, Washington headquarters. In July 2025 — Microsoft announced another round of layoffs, cutting approximately 9,000 employees in its largest workforce reduction in over two years. Blizzard president Mike Ybarra and chief design officer Allen Adham also resigned. The layoffs primarily affected Activision Blizzard employees, but some Xbox and ZeniMax employees were also affected. 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. Its total market value was over $410B—with the stock price hitting $50.04 a share, the highest since early 2000.

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Intune for Education is a new, cloud-based service for managing apps and devices in the education sector. Under Nadella’s leadership, the company shifted its focus towards cloud computing. To meet potential increased demand, Microsoft opened several “holiday stores” across the U.S., supplementing the growing number of “bricks-and-mortar” Microsoft Stores that opened in 2012. The Surface (debuted in June 2012), was the first Microsoft computer with hardware made by the company itself.

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Consequently, in February 2011 Microsoft released a corporate bond amounting to $2.25 billion with relatively low borrowing rates compared to government bonds. Board members are elected every year at the annual shareholders’ meeting using a majority vote system. The company is run by a board of directors made up of mostly company outsiders, as is customary for publicly traded companies.