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Microsoft is quietly walking back its diversity efforts

by Investor News Today
December 4, 2025
in Technology
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Microsoft is quietly walking back its diversity efforts
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Microsoft has been publishing knowledge concerning the gender, race, and ethnic breakdown of its staff for greater than a decade. Since 2019 it’s been publishing a full variety and inclusion report yearly, and on the similar time made reporting on variety a requirement for worker efficiency critiques.

Now it’s scrapping its variety report and dropping variety and inclusion as a companywide core precedence for efficiency critiques, simply months after President Donald Trump issued an government order to try to eradicate workforce variety, fairness, and inclusion (DEI) initiatives.

Recreation File reported final week that Microsoft will stop publication of its variety and inclusion experiences this yr. “We aren’t doing a conventional report this yr as we’ve advanced past that to codecs which can be extra dynamic and accessible — tales, movies, and insights that present inclusion in motion,” stated Frank Shaw, Microsoft’s chief communications officer, in an announcement to Notepad. “Our mission and dedication to our tradition and values stay unchanged: empowering each particular person and group to realize extra.”

Sources inform me that Microsoft additionally quietly made some large adjustments to its worker efficiency critiques final month, identified internally as Join. Microsoft has eliminated its companywide safety and variety “core priorities” from its efficiency critiques, which means staff now not need to submit precisely what they did to enhance safety and variety and what they plan to do sooner or later.

Microsoft staff all the time needed to reply “What influence did your actions have in contributing to a extra various and inclusive Microsoft?” and “What influence did your actions have in contributing to a safer Microsoft?” Each of those questions have been eliminated, changed with a simplified kind that asks staff to replicate on the outcomes they delivered and the way they achieved them, and any latest setbacks and objectives for the longer term.

The efficiency evaluation adjustments have been introduced by way of a Viva Interact submit on Microsoft’s worker information group, as a substitute of by way of a mass electronic mail. Microsoft described its adjustments internally as a simplification, and introduced that “core priorities at the moment are merely referred to as objectives, with at the very least one purpose centered on safety.”

In HR documentation, the corporate doesn’t even use the phrase “variety” anymore, choosing simply “inclusion” as a substitute. “Safety, inclusion, and robust folks administration stay important to how we ship influence at Microsoft,” says Microsoft in its HR documentation. “Inclusion is embedded in how you’re employed, work together, and lead, reflecting our development mindset tradition.”

One worker, who helps Microsoft’s DEI initiatives and desires to stay nameless, informed me that including the requirement to its efficiency critiques 5 years in the past appeared “utterly insincere and performative” on the time. “The truth that the corporate (and most of company America) simply dropped it proves to me that it was all the time a shallow dedication.” The worker desires “depth and sincerity” in executing DEI insurance policies, which they are saying Microsoft by no means achieved.

Different staff I’ve spoken to concerning the adjustments aren’t stunned by Microsoft’s stroll again. Some level to Elon Musk’s look onstage at Microsoft’s Construct convention earlier this yr as an indication that Microsoft was cozying as much as the Trump administration.

Musk’s look at Construct in Could brought on loads of stress internally, at a time when he was heading up DOGE to dismantle authorities businesses and government-funded organizations. One supply informed me on the time that the corporate’s GLEAM group (International LGBTQIA+ Staff and Allies at Microsoft) have been “incensed” by Microsoft CEO Satya Nadella welcoming Musk to Construct.

Musk’s look was a part of a broader push by Nadella to get Musk’s Grok AI mannequin onboarded to Azure in time for Construct. Grok 3 was a part of the Construct bulletins, however months later Microsoft needed to cautiously onboard Grok 4 after main issues about its output. One worker informed me over the summer time that the protection points round Grok 4 have been “very ugly.”

Microsoft pushed forward with personal testing of Grok 4 with potential enterprise prospects, nevertheless it additionally shortly rolled out Grok Code Quick 1 to GitHub Copilot. One Microsoft worker stated on the time that “this was pushed out with a rushed safety evaluation, a coerced and unwilling engineering group, and in full opposition to our supposed firm values.”

It’s now going to be much more troublesome to evaluate these firm values.
Microsoft remains to be publishing its Inside Inclusion publication and “Code of Us” tales that spotlight experiences from Microsoft staff with various backgrounds, however they’re not the identical as having variety and inclusion as a core precedence for workers, the main target of an annual report, or a part of disclosures to shareholders.

LinkedIn has been testing an AI private assistant for Microsoft execs

Microsoft staff have noticed some firm executives utilizing a brand new, unannounced AI private assistant. Sources inform me that Microsoft CTO Kevin Scott has “Kevin’s Cosio,” a private AI assistant that experiences on to him within the firm’s world listing, alongside different human direct experiences.

Cosio is a undertaking from Microsoft’s LinkedIn group that’s designed to be an autonomous, AI-powered digital assistant. You’d assume that will merely be Copilot, however Cosio is described internally as a “next-generation digital employee” that’s deeply built-in into Microsoft’s enterprise surroundings. I’m informed it’s able to automating duties, constructing workflows, and collaborating with human staff and different AI brokers.

Kevin Scott’s AI assistant appears like a real employee.

Kevin Scott’s AI assistant seems like an actual worker.

Microsoft has been testing Cosio with some executives internally, together with Charles Lamanna, head of Microsoft’s enterprise and business Copilot (BIC) group. Cosio was a part of Microsoft’s new Agent 365 initiative, a framework that controls how AI brokers entry knowledge and work like human staff. Microsoft was planning to roll it out to all staff by the tip of October, however that date handed and solely execs have been in a position to take a look at Cosio.

It seems like Cosio received’t be rolling out extra extensively anymore. “As Buyer Zero, we’re consistently experimenting with rising applied sciences — some make it into our roadmap, others don’t,” says Microsoft spokesperson Cynthia Reynaud, in an announcement to Notepad. “Cosio was a useful experiment that’s now informing the options we ship to prospects.”

Nonetheless, it’s attention-grabbing that Microsoft was testing the viability of getting digital employee bots that seem like actual staff.

  • Round 500 million PCs are holding off upgrading to Home windows 11, says Dell. We already knew that Home windows 11 adoption was slower than Home windows 10, however final week Dell put a quantity on the folks holding off upgrading: 500 million. Not solely are that many machines able to being upgraded to Home windows 11 however haven’t been, however Dell says across the similar quantity can’t improve as a consequence of Home windows 11’s strict {hardware} necessities. I anticipated hundreds of thousands of customers to stay with Home windows 10, however I didn’t assume the general quantity (together with company machines) can be as excessive as 500 million.
  • Microsoft’s newest Home windows 11 replace improves and breaks darkish mode. Microsoft shipped a Home windows 11 replace this week that was supposed to enhance darkish mode consistency, nevertheless it additionally added an embarrassing bug. After putting in the replace, each time you open File Explorer it now flashes white. You couldn’t make this up, and I’m stunned that Microsoft didn’t spot this apparent bug throughout testing. Microsoft says it’s engaged on a repair.
  • Microsoft’s ugly sweaters return with Clippy, Xbox, and Zune brown choices. Microsoft is bringing again its ugly sweaters for the vacation season. This yr the corporate has an “Artifact” sweater with numerous retro iconography, a Zune brown sweater, and even an Xbox possibility. The Artifact sweater places Clippy on the middle, surrounded by MSN, Minesweeper, Web Explorer, MS-DOS, and loads of Home windows logos. As a result of Microsoft can’t resist placing a Copilot emblem all over the place, this retro sweater even has a Copilot icon on the sleeve. All of the sweaters can be found in restricted portions at Microsoft’s on-line retailer.
  • Satya Nadella warns of AI’s influence on knowledge middle energy consumption. Microsoft’s CEO admitted this week that the vitality use of AI knowledge facilities may flip folks in opposition to the tech business. In an interview with Mathias Döpfner, the CEO of Axel Springer, Nadella says that the tech business “must earn the social permission to eat vitality, as a result of we’re doing good on the planet.” He additionally stated that individuals will settle for the additional stress on the electrical grid if it “ends in financial development that’s broad-spread within the economic system.” To this point, we’re nonetheless ready to see if AI is a bubble that may burst or add actual worth to productiveness.
  • Microsoft says it’s not decreasing gross sales quotas for AI merchandise. Microsoft has come out swinging in opposition to a report from The Data that claimed a number of Microsoft divisions have lowered the gross sales targets of salespeople for sure AI merchandise after “lots of them” missed sales-growth objectives. An unnamed Microsoft spokesperson informed CNBC that the corporate has not lowered gross sales quotas or targets for its salespeople. “Combination gross sales quotas for AI merchandise haven’t been lowered, as we knowledgeable them previous to publication,” stated the unnamed Microsoft spokesperson.
  • Xbox Cloud Gaming is getting a brand new design quickly. Microsoft is on the brink of revamp the Xbox Cloud Gaming interface with a design that extra intently resembles the Xbox PC app. The developer behind Higher xCloud noticed the adjustments, with a promotional video providing a short take a look at what’s coming. Given there’s a “strive new expertise” button in take a look at variations of xCloud, I’d anticipate we’ll see this seem for Xbox Insiders very quickly.
  • Linux founder defends Microsoft’s Blue Display screen of Dying. The creator and lead developer of the Linux kernel, Linus Torvalds, has come out as an unlikely ally to Home windows this week. Torvalds defended the Blue Display screen of Dying errors in Home windows in an look on Linus Tech Suggestions, saying that almost all have been associated to “{hardware} being not dependable” as a substitute of software program bugs in Home windows. Microsoft has now modified the BSOD to black, in an effort to simplify the error display and to most likely shift away from the memes and jokes.
  • Microsoft appears to be like to maneuver Xbox manufacturing to Vietnam. Microsoft is reportedly planning to maneuver a few of its Xbox manufacturing to factories in Vietnam. Reuters experiences {that a} Foxconn subsidiary is looking for a allow to make as much as 4.8 million Xbox gaming gadgets in Vietnamese factories. This follows a report final month that instructed Microsoft was shifting its Floor manufacturing out of China and seeking to produce extra Xbox consoles outdoors of the nation. Shifting manufacturing to Vietnam will assist Microsoft keep away from a few of the bigger Trump tariffs which have impacted Xbox console costs within the US.
  • Microsoft is perhaps ditching Contoso and Fabrikam. I keep in mind doing Microsoft Licensed Techniques Engineer certifications as an adolescent and seeing the pretend Contoso and Fabrikam firms in each state of affairs. Microsoft has used these two firms for demos and testing for many years now, however as the corporate pushes forward with its AI transformation it’s additionally introducing a brand new pretend firm: Zava. The Register noticed Microsoft utilizing this firm throughout its Ignite convention, and it has additionally proven up in some technical paperwork just lately. Microsoft says Zava is a “frontier” firm, the moniker it makes use of for firms which can be quickly adopting AI. Hopefully Contoso and Fabrikam can survive Microsoft’s AI transition, although.

I’m all the time eager to listen to from readers, so please drop a remark right here, or you may attain me at notepad@theverge.com if you wish to focus on the rest. If you happen to’ve heard about any of Microsoft’s secret initiatives, you may attain me through electronic mail at notepad@theverge.com or converse to me confidentially on the Sign messaging app, the place I’m tomwarren.01. I’m additionally tomwarren on Telegram, if you happen to’d desire to speak there.

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