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As reported by several news outlets, an Irish subsidiary of Microsoft based in the Republic of Ireland declared £220 bn in profits but paid no corporation tax for the year 2020. This characterization is derived from the perception that Microsoft provides nearly everything for its employees in a convenient place, but in turn overworks them to a point where it would be bad for their (possibly long-term) health. 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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It is estimated to encompass over 8 million ft2 (750,000 m2) of office space and 30,000–40,000 employees. 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. Following media reports about PRISM, NSA's massive electronic surveillance program, in May 2013, several technology companies were identified as participants, including Microsoft. Amy Coleman, Microsoft's executive vice president and chief people officer, said the layoffs were not the result of employees being replaced by AI, but acknowledged that AI is changing how work is done. In May 2025, Microsoft announced that it is laying off more than 6,000 employees, around three percent of the company's entire workforce.
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