Microsoft Faces Employee Protests Over Israel Cloud Deals as Review Looms

Microsoft is dealing with internal protests over its business ties with Israel during the war in Gaza. A group of employees protested at the company's Redmond campus, demanding that the company stop supporting the Israeli military with its Azure cloud tools. Microsoft states that its tools are used for cybersecurity support and that its terms of service prohibit harmful use. The company is reviewing its work with Israel again. The protest follows a pattern of rising activism inside major tech firms.

Microsoft is grappling with internal protests from employees who are demanding that the company sever its business ties with Israel, particularly in relation to its Azure cloud services. The protests, which have been ongoing for several months, have intensified in recent weeks as the conflict in Gaza escalates.

On Tuesday, seven people, including current and former employees, were arrested after occupying the office of Microsoft President Brad Smith at the company's Redmond, Washington headquarters [1]. The group, known as No Azure for Apartheid, has accused Microsoft of enabling surveillance and military operations through its Azure cloud platform. They allege that the Israeli Defense Forces have used Azure to store phone call data from Palestinians in Gaza and the West Bank [2].

Microsoft has denied any violations of its policies and has hired an outside law firm to review the claims. However, the company's president, Brad Smith, criticized the protesters for planting hidden cell phones and refusing to leave when asked. He also stated that the company would consider disciplinary action against staff who participated in the protest [1].

This incident is part of a series of protests and disruptions at Microsoft's campus. Earlier this month, 18 people were arrested during a similar protest at the company's headquarters. The group's demands include severing all ties with Israel and paying reparations to Palestinians [1].

The protests reflect growing tensions over the role of U.S. tech giants in global defense work. Google, which also faces backlash over contracts with Israel, fired 28 employees last year for staging similar demonstrations [1].

Microsoft has stated that it remains committed to the ethical use of its technology and has pledged transparency once its investigation is complete. The company's terms of service forbid misuse of its services [1].

The protests come as groups like the Boycott, Divestment, and Sanctions movement continue to call for people to boycott Microsoft and Xbox products over the company's relationship with the Israeli military [3].

References:
[1] https://www.nasdaq.com/articles/microsoft-protest-escalates-seven-arrested-occupying-presidents-office-over-israel-ties
[2] https://www.theguardian.com/us-news/2025/aug/26/microsoft-employee-sit-in-israeli-military-ties
[3] https://rockpapershotgun.com/microsoft-staff-perform-sit-in-protest-in-company-presidents-office-over-israeli-military-ties