Microsoft Corp. (NASDAQ:MSFT) is tightening its hybrid work model, ending years of broad remote flexibility and requiring employees to return to the office at least three days a week beginning in 2026.
Seattle Employees First To Face Mandatory Return-To-Office Policy
In an internal memo sent Tuesday, Microsoft human resources chief Amy Coleman said the shift will roll out in three phases, starting with Seattle-area staff who live within 50 miles of a company office, as reported by Business Insider.
The policy will later extend to other U.S. offices and eventually overseas.
Microsoft Links In-Person Work To AI Innovation And Productivity
"We've looked at how our teams work best, and the data is clear: when people work together in person more often, they thrive—they are more energized, empowered, and they deliver stronger results," Coleman wrote.
"As we build the AI products that will define this era, we need the kind of energy and momentum that comes from smart people working side by side."
Employees may request exceptions by Sept. 19, though Microsoft has not detailed how those requests will be handled. The company said the new expectations are "not about reducing headcount" but about strengthening collaboration.
See Also: Ramit Sethi Lays Out the Most Common Money Traps—And How To Dodge Them Before It's Too Late
Tensions Rise As Microsoft And OpenAI Balance Partnership And Future AI Access
Microsoft has poured more than $13 billion into OpenAI, the maker of ChatGPT, and continues to be its largest financial supporter.
A spokesperson told the outlet that "OpenAI will continue to be our partner on frontier models and we remain committed to our long-term partnership."
Despite that commitment, friction has emerged. Earlier this year, reports pointed to disagreements over a contract provision that might restrict Microsoft's access once OpenAI develops artificial general intelligence.
Meanwhile, OpenAI is reportedly weighing a secondary share sale that could push its valuation to $500 billion, a sharp increase from about $300 billion earlier in 2025.
Price Action: Microsoft shares inched higher by 0.042% to close at $498.41 on Tuesday and were down 0.082% in Wednesday's premarket trading at the time of writing, according to Benzinga Pro.
Read Next:
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo courtesy: Shutterstock
