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Microsoft faces scrutiny over layoffs and Israel ties
Microsoft will conduct a formal review into Guardian allegations about Azure use by the IDF amid Gamescom 2025 coverage.
Microsoft faces questions about layoffs and its links to Israel during Gamescom 2025 as unions press for transparency.
Microsoft faces scrutiny over layoffs and Israel ties at Gamescom 2025
At Gamescom 2025, Microsoft faced questions about its layoffs and its links to Israel. The company says it will run a formal review of a Guardian report that claims the Azure service is used by the Israeli Defense Forces to store data from mass civilian surveillance in Gaza and the West Bank. Microsoft says such use would violate its terms of service and that an updated review will be led by Covington & Burling LLP with help from an independent consultant. Earlier reviews had found no misuse, but the company now acknowledges new and precise allegations warrant a fuller look.
Arkane staff at Gamescom and other workers have criticized Microsoft. An open letter from Arkane in France supported the BDS movement and called for Microsoft to cut ties with the Israeli military. No comments were given at Gamescom despite repeated requests. Microsoft has also laid off about 9,000 workers recently and faces questions about transparency around the cuts. Protests and continued employee activism add pressure for clear responses from the company.
Key Takeaways
"The Guardian's recent report raises additional and precise allegations that merit a full and urgent review."
Direct quote from the updated Microsoft blog post.
"Microsoft is turning to Covington & Burling LLP, with technical assistance from an independent consulting firm, to conduct the review."
Direct quote from the blog post about the review.
"We refuse to become cogs in the Israeli genocidal machine."
Protesters' message at No Azure for Apartheid rally.
"The company will share with the public the factual findings that result from this review, once it is complete."
Direct quote from the blog post about disclosure.
The move to launch a formal review can be seen as an effort toward accountability, but it may still feel defensive to some observers. By naming Covington & Burling and an independent consultant, Microsoft signals seriousness while keeping control of the narrative. The tension between employee activism and corporate messaging highlights a broader push for transparency in tech companies under public scrutiny.
As layoffs hit thousands of workers and public comments remain limited, how Microsoft communicates the findings will shape trust. If the findings are clear and shared promptly, it could ease tensions with workers and investors. If not, it may deepen distrust and keep the spotlight on Microsoft’s political ties and business choices.
Highlights
- The Guardian's report demands an urgent review
- Microsoft taps Covington for a formal review
- No Azure for Apartheid protests reveal deeper staff tensions
- Microsoft will publish the findings when the review finishes
Political sensitivity and backlash risk
The article highlights sensitive political topics around Israel, the BDS movement, and civilian surveillance. It also covers mass layoffs and worker protests, which could trigger public and investor backlash if messaging is unclear. The combination raises reputational and financial risk for Microsoft if not managed carefully.
The coming weeks will test how openly Microsoft can address tough questions.
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