Hybrid no more? Microsoft eyes tougher office attendance rules

Microsoft is reportedly planning a significant overhaul of its remote work model, with a more rigid return-to-office (RTO) policy under discussion for certain teams as early as January 2025.

This would mark a departure from the company’s flexible hybrid arrangement, which has been in place since the pandemic and currently allows employees to work remotely up to 50 per cent of the time without special permission.

Policy shift under review

According to sources cited by Business Insider, Microsoft is weighing a mandate that would require most employees to be in the office at least three days per week. While the plan has not yet been finalised, internal discussions suggest Redmond, Washington, home to the company’s global headquarters, could see the first phase of the rollout early next year.

A Microsoft spokesperson confirmed that the company is “reviewing flexible work guidelines,” but emphasised that “no decision has been made yet.” An announcement had originally been considered for September, though the timeline remains fluid.

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The move would place Microsoft in step with other tech giants like Amazon and AT&T, both of which have implemented stricter in-office attendance requirements in the past year. AT&T’s CEO, John Stankey, even warned staff that they must comply or leave the company.

Changes follow deep job cuts

This potential policy change comes on the heels of extensive internal restructuring. Microsoft has laid off more than 15,000 employees throughout 2024 across four rounds of job cuts, the most recent of which affected approximately 9,000 workers and was announced just last week. The reductions represent about 4% of Microsoft’s global workforce, which currently stands at around 2,28,000.

In a note to staff, CEO Satya Nadella described the layoffs as “one of the hardest choices the company has to make,” acknowledging the emotional difficulty of parting ways with longtime colleagues. He thanked affected employees for their contributions, saying they had helped shape Microsoft’s current success.

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Aligning with industry trends

If implemented, the updated RTO policy would further align Microsoft with a broader industry trend of pulling back from remote work. Since 2020, the company has been seen as a hybrid work advocate, but sources suggest that internal leniency has often extended beyond the official policy, with some teams operating almost entirely remotely.

As Microsoft grapples with economic headwinds, strategic realignments, and shifting market demands, the potential change in workplace flexibility appears aimed at reinforcing internal cohesion and operational efficiency. Whether employees will embrace the change, however, remains an open question.