bloomberg.com 2025-08-26 - Twenty activists urging company to sever ties with Israeli military were arrested last week. Executive Brad Smith said he welcomed discussion but not disruption.
For the better part of a year, Microsoft Corp. has failed to quell a small but persistent revolt by employees bent on forcing the company to sever business ties with Israel over its war in Gaza.
The world’s largest software maker has requested help from the Federal Bureau of Investigation in tracking protests, worked with local authorities to try and prevent them, flagged internal emails containing words like “Gaza” and deleted some internal posts about the protests, according to employees and documents reviewed by Bloomberg. Microsoft has also suspended and fired protesters for disrupting company events.
Despite those efforts, a steady trickle of employees, sometimes joined by outside supporters, continue to speak out in an escalating guerilla campaign of mass emails and noisy public demonstrations. While still relatively small, the employee activism is notable given the weakening job market and the Trump administration’s crackdown on pro-Palestinian protests.
Last week, 20 people were arrested on a plaza at Microsoft’s Redmond, Washington, headquarters after disregarding orders by police to disperse. Instead, they chanted and called out Microsoft executives by name, linking arms as police dismantled their makeshift barricades and, one by one, zip-tied them and led them away.
On Tuesday, protesters occupied the office of Microsoft President Brad Smith, sharing video on the Twitch livestreaming platform that showed them chanting, hanging banners and briefly attempting to barricade a door with furniture. Smith didn’t appear to be there. Police detained at least two people who entered a building that houses the offices of senior executives, said Jill Green, a spokesperson for the Redmond Police Department. Others were protesting outside, she said.
An employee group called No Azure for Apartheid says that by selling software and artificial intelligence tools to Israel’s military, the company’s Azure cloud service is profiting from the deaths of civilians. Microsoft denies that, but the protests threaten to dent its reputation as a thoughtful employer and reasonable actor on the world stage. In recent years, Microsoft has generally stayed above the fray while its industry peers battled antitrust investigations, privacy scandals or controversial treatment of employees.
Now Microsoft is being forced to grapple with perhaps the most politically charged issue of the day: Israel’s treatment of Palestinians. Earlier this month, the company announced an investigation into reports by the Guardian newspaper and other news outlets that Israel’s military surveillance agency intercepted millions of Palestinian mobile phone calls, stored them on Microsoft servers then used the data to select bombing targets in Gaza. An earlier investigation commissioned by Microsoft found no evidence its software was used to harm people.
Microsoft says it expects customers to adhere to international law governing human rights and armed conflict, and that the company’s terms of service prohibit the use of Microsoft products to violate people’s rights. “If we determine that a customer — any customer — is using our technology in ways that violate our terms of service, we will take steps to address that,” Smith said in an interview last week, adding that the investigation should be completed within several weeks. Smith said employees were welcome to discuss the issue internally but that the company will not tolerate activities that disrupt its operation or staffers.
After Hamas’s deadly Oct. 7, 2023 attack on Israel, Microsoft executives were quick to offer condolences and support to employees. “Let us stand together in our shared humanity,” then-human resources chief Kathleen Hogan said in a note a few days after the attacks, which killed some 1,200 people, including civilians and soldiers.
Unity was short-lived: Jewish employees lamented what they said was a troubling rise in antisemitism. Palestinian staffers and their allies accused executives of ignoring concerns about their welfare and the war in Gaza, which has killed tens of thousands. The debate continued in internal chatrooms, meetings with human resources leaders and in question-and-answer sessions with executives. But the chatter was mostly limited to Microsoft’s halls.
That changed in early April at a bash Microsoft hosted to mark the 50th anniversary of the company’s founding. Early that morning, Vaniya Agrawal picked up Ibtihal Aboussad and drove to Microsoft’s campus. The two early-career company engineers — who respectively hail from the Chicago area and Morocco — had both decided to leave Microsoft over its ties to Israel, which had been documented in a series of articles, including by the Associated Press, and reached out to No Azure for Apartheid. “This isn’t just Microsoft Word with a little Clippy in the corner,” said Agrawal, who was arrested on Wednesday. “These are technological weapons. Cloud and AI are just as deadly as bombs and bullets.”
