Microsoft Lets Employees Raise Concerns About Products After Middle East Controversy

Microsoft is introducing a new internal system to let its employees report concerns about how the company’s technology is being used, following recent criticism over its involvement in Middle East operations.

In a memo disclosed in a securities filing on Wednesday, Brad Smith, Microsoft’s president, said that the company’s internal portal now allows workers to request a “Trusted Technology Review.” The feature is intended for employees who want to raise ethical or human rights issues related to Microsoft’s products or projects.

“Our standard non-retaliation policy applies, and you can raise concerns anonymously,” Smith wrote, emphasizing that all reports would be reviewed under Microsoft’s existing compliance framework.

The move follows weeks of internal unrest after media reports linked Israel’s military intelligence unit, Unit 8200, to the use of Microsoft’s Azure cloud services for tracking Palestinian communications. The Guardian reported in August that the system was part of Israel’s operations in Gaza, prompting Microsoft to launch an internal investigation.

Following the controversy, the company suspended certain services provided to an Israeli defense unit. However, the revelations sparked employee protests, with some workers resigning or being dismissed amid growing debate over the ethical use of Microsoft technologies.

Despite the internal turbulence, Microsoft’s business performance has remained strong. The company’s stock recently hit a record high as major partners, including OpenAI, continue to rely heavily on Azure cloud infrastructure to run large-scale AI models.

Still, Smith acknowledged that recent events had underscored the need for stronger governance. “We are working to strengthen our existing pre-contract review process for evaluating engagements that require additional human rights due diligence,” he said.

The company also faced scrutiny earlier this year after reports emerged describing the U.S. Defense Department’s reliance on Microsoft engineers based in China, raising fresh questions about security and oversight.

As Microsoft approaches its next chapter after celebrating its 50th anniversary in April, the company is aiming to balance rapid innovation with accountability. The new Trusted Technology Review initiative marks an attempt to ensure that employees can speak up about ethical concerns, and that the world’s largest software maker remains vigilant about the impact of its products.