Microsoft’s 2025 Layoffs: Key Facts for Canadian Employees
On May 13 and July 2, 2025, Microsoft announced two major rounds of workforce reductions.
The two waves bring total 2025 cuts to 15,000+ positions. Microsoft says the goal is to fund soaring AI and cloud-infrastructure spending—up to US $80 billion this fiscal year—while “flattening” management layers.
Impact in Canada
Microsoft employs about 5,500 people nationwide, with its Canadian head office in Toronto and regional hubs in Ottawa, Vancouver and Montréal.
Although the company has not released Canadian-specific figures, BNN Bloomberg reports the layoffs will reach Canadian offices.
Tech layoffs can ripple through related suppliers, start-ups and local economies—especially in talent-dense cities such as Toronto’s “Silicon Valley North.”
Under the Employment Standards Act, 2000 (ESA), the statutory ceiling is 8 weeks’ notice plus up to 26 weeks of severance pay for mass terminations—but the common law frequently awards far more, sometimes one month per year of service or higher.
A. Problems We’re Already Seeing in Microsoft Packages
Short deadlines (e.g., 5–10 days) pressuring employees to sign releases.
Mislabelled “temporary layoffs.” In Ontario, most layoffs lasting > 13 weeks in a 20-week window are terminations requiring full severance.
Omission of bonuses, RSUs and stock awards during the notice period.
If any of the above apply, you may have a wrongful dismissal claim.
B. Precedent to Know: Battiston v. Microsoft Canada Inc. (2020 ONSC 4286)
The Ontario Superior Court held that Microsoft’s stock-award plan did not validly remove an employee’s right to unvested shares during the notice period because the restrictive language was not properly brought to the employee’s attention. The court awarded:
24 months’ notice (including bonus and stock compensation)
$120,000 in legal costs
The case underscores the importance of reviewing equity-based compensation when assessing severance entitlements.
Five Immediate Steps If You Receive a Layoff Notice
Do not sign anything on the spot. Ask for the full package in writing.
Calculate ESA minimums—they are a floor, not a ceiling.
Gather your employment documents: offer letter, any amendments, equity plan, bonus plan, performance reviews.
Document job-search efforts—this protects future damage claims.
Book a consultation with an employment lawyer before the deadline expires.
How Vanguard Law Can Help
Severance Package Reviews. We identify gaps in salary, commission, equity and benefits.
Wrongful Dismissal Litigation. Where negotiation fails, we pursue full common-law damages.
Equity & Bonus Claims. Drawing on cases like Battiston, we challenge unenforceable plan language.
Group Workshops. We brief affected teams on rights and next steps (virtual or in-office across Ontario).