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Amid the layoffs, Microsoft also closed its office in Pakistan and laid off its employees there as part of its move toward a software-as-a-service and AI operating model. In May 2025, Microsoft announced that it is laying off more than 6,000 employees, around three percent of the company’s entire workforce. Microsoft is one of only two U.S.-based companies that have a prime credit rating of AAA. In June 2024 — Microsoft announced it would be laying off 1,000 employees from the company’s mixed reality and Azure cloud computing divisions. In the same month — Microsoft acquired Australia-based video editing software company Clipchamp.

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As of January 2011,update it has no products that are completely free from PVC and BFRs.needs update Microsoft’s deadline for phasing out brominated flame retardant (BFRs) and phthalates in all products was in 2012 but its commitment to phasing out PVC is not clear. In August 2018, Microsoft implemented a policy for all companies providing subcontractors to require 12 weeks of paid parental leave to each employee. The Human Rights Campaign Corporate Equality Index (a report of how progressive the organization deems company policies towards LGBT employees), rated Microsoft as 87% from 2002 to 2004 and as 100% from 2005 to 2010 after it allowed gender expression. Bill Gates claims the cap on H1B visas makes it difficult to hire employees for the company, stating „I’d certainly get rid of the H1B cap“ in 2005.

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The Surface was unveiled in June 2012, becoming the first computer in the company’s history to have its hardware made by Microsoft. Microsoft unveiled Windows 8, an operating system designed to power both personal computers and tablet computers, in Taipei in June 2011. Following the release of Windows Phone (Microsoft undertook a gradual rebranding of its product range throughout 2011 and 2012), with the corporation’s logos, products, services, and websites adopting the principles and concepts of the Metro design language. Increasingly present in the hardware business following Xbox, Microsoft 2006 released the Zune series of digital media players, a successor of its previous software platform Portable Media Center. Microsoft created Windows CE 1.0 (a new OS designed for devices with low memory and other constraints), such as personal digital assistants. Other companies like Borland (WordPerfect), Novell, IBM and Lotus, being much slower to adapt to the new situation, would give Microsoft market dominance.

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