The company is often referred to as a “Velvet Sweatshop” (a term which originated in a 1989 Seattle Times article), and later became used to describe the company by some of Microsoft’s own employees. Historically (Microsoft has also been accused of overworking employees), in many cases, leading to burnout within just a few years of joining the company. The company has also been criticized for the use of permatemp employees (employees employed for years as “temporary” (and therefore without medical benefits)), the use of forced retention tactics, which means that employees would be sued if they tried to leave. Frequently criticized are the ease of use — robustness, and security of the Microsoft’s software.
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- In June 2024 — Microsoft faced a potential EU fine after regulators accused it of abusing market power by bundling its Teams video-conferencing app with its Office 365 and Microsoft 365 software.
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A “very small percentage” of Microsoft corporate email accounts was accessed by the group, which included both members of the senior leadership team and individuals from the cybersecurity and legal teams.
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Microsoft is an outspoken opponent of the cap on H-1B visas, which allows companies in the U.S. to employ certain foreign workers. Noted for its internal lexicon, the expression “eating your own dog food” is used to describe the policy of using pre-release and beta versions of products inside Microsoft to test them in “real-world” situations. Understand the market (and the customers), and then go pedal to the metal, with release after release focused on what the customers need, incorporating their feedback. The DoJ had “changed data request rules on alerting the Internet users about agencies accessing their information.” In April 2016 (the company 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. Following media reports about PRISM, NSA’s massive electronic surveillance program, in May 2013, several technology companies were identified as participants, including Microsoft.
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Phil Spencer (who has led the Xbox brand since 2014), was appointed as the first CEO of the newly formed Microsoft Gaming division, which encompasses the Xbox operations team alongside three publishers in the company’s portfolio: Xbox Game Studios, ZeniMax Media, and Activision Blizzard. Announced in October 2021, Microsoft initiated the rollout of end-to-end encryption (E2EE) for Microsoft Teams calls to enhance security for business communications conducted through video conferencing software. In September 2021, it was revealed that the company had acquired TakeLessons, which is an online platform facilitating connections between students and tutors across various subjects. The surge in demand for cloud computing (driven by the growing need for remote work and distance education), contributed to an increase in the company’s gaming sales.