Microsoft SharePoint Zero-Day Hack & 9,000 Layoffs

Microsoft SharePoint Under Attack & 9,000 Job Cuts – July 2025 Tech News

Published: July 21, 2025
By: Flash Global News Desk

🔐 SharePoint Zero-Day Vulnerability: A Global Crisis

Microsoft is once again at the center of a global cybersecurity storm. A newly discovered zero-day vulnerability, identified as CVE-2025-53770, has been actively exploited in SharePoint Servers across multiple continents, affecting U.S. government agencies, financial institutions, and enterprises.

Known as "ToolShell" in the cybersecurity community, the exploit allows attackers to bypass authentication, execute arbitrary code, and steal cryptographic keys — opening the door to full system compromise.

🌍 Global Scope of the Attack

U.S. federal and state agencies confirmed intrusions, prompting a joint advisory from CISA and Microsoft.
The UK’s NCSC identified “a limited number of domestic victims.”
Canada and Australia also issued public alerts, suggesting coordinated targeting.

⚠️ Affected Systems

Microsoft has clarified that SharePoint Server Subscription Edition and SharePoint Server 2019 have received emergency patches. However, SharePoint 2016 and earlier versions remain vulnerable without viable mitigation for some scenarios.

Attackers are believed to be using stolen administrative credentials and leveraging custom PowerShell payloads to gain persistence and data exfiltration capabilities.

🛡️ Microsoft & Government Response

Microsoft's official blog urged customers to:

Immediately apply the July 20, 2025 patches
Regenerate compromised certificates and API keys
Enable AMSI (Antimalware Scan Interface) for real-time script monitoring
Use Microsoft Defender for Endpoint for advanced detection

The U.S. Cybersecurity and Infrastructure Security Agency (CISA) also issued a binding directive mandating all federal agencies to disconnect vulnerable SharePoint instances not yet patched.

💻 Third-Party Expert Opinion

Brian Krebs of KrebsOnSecurity stated, “This exploit is a reminder that legacy on-prem systems remain a weak link. Cloud-hosted SharePoint Online is unaffected, which will only accelerate Microsoft’s push to cloud migration.”

💼 Microsoft Layoffs: 9,000 Employees Let Go in July 2025

While Microsoft was fighting a cybersecurity crisis, the company also announced a major organizational restructuring. Nearly 9,000 employees have been laid off globally, with a focus on sales, marketing, and gaming divisions.

🎮 Gaming Units Hit Hard

Sources from The Verge reported that internal studios such as:

ZeniMax
The Initiative
Activision Publishing
King Mobile

...saw significant cuts as Xbox pivots toward AI-assisted game development tools and cloud gaming services.

🤖 Sales Teams Replaced by “AI-Aware Engineers”

Business Insider reported that Microsoft is replacing hundreds of traditional sales roles with “solutions engineers” equipped to deploy AI products and handle enterprise AI implementations. This shift is part of CEO Satya Nadella’s long-term vision to become the leading provider of enterprise AI solutions, competing with OpenAI and Google.

🆕 Windows 11 Gets Major Upgrades (Insider Beta – July 2025)

In a bid to distract from bad press, Microsoft has rolled out significant beta features in Windows 11's Insider Program:

Adaptive Energy Saver – Learn your usage patterns to save battery
Quick Machine Recovery – One-click backup to restore system states
AI-Powered “Click to Describe Image” – Describe any image with just one click in Copilot+
Improved Permission Dialogs – Smarter access prompts for security transparency

These features signal Microsoft’s intent to deeply embed Copilot and AI into core operating system tasks by default.

📊 Microsoft’s AI Roadmap: Profit at All Costs?

Despite the chaos, Microsoft's stock price remains stable, thanks to confidence in its aggressive AI push. Azure AI, GitHub Copilot, and Office Copilot continue to generate record subscriptions.

However, critics argue the company’s ethical responsibilities are being sidelined. Job losses and security breaches seem contradictory to the image of a “responsible tech giant.”

📈 Revenue vs Reputation

Microsoft’s fiscal Q2 report is expected next week, and analysts forecast a 14% YoY increase in cloud revenue. Whether that growth is sustainable amidst operational shakeups remains to be seen.

📌 Conclusion

July 2025 has been a rollercoaster month for Microsoft. On one hand, the company is delivering innovation and doubling down on AI. On the other, it is dealing with a severe SharePoint zero-day exploit and massive employee layoffs that have shaken its workforce and enterprise customers.

For now, organizations using SharePoint on-premise must prioritize security, apply patches, and consider transitioning to cloud-based infrastructure. Meanwhile, Microsoft’s evolving workforce model suggests that future jobs at the company will demand strong AI literacy and technical acumen.

🧐 FAQs – Microsoft July 2025 News

1. Is Microsoft SharePoint Online affected by the CVE-2025-53770 vulnerability?

No, Microsoft confirmed that SharePoint Online is not impacted. Only on-premises installations are vulnerable.

2. Which Microsoft divisions are affected by layoffs?

The layoffs largely affected Xbox studios, Activision subsidiaries, and traditional sales and marketing teams.

3. How can I secure my SharePoint server?

Install the latest patches from Microsoft, rotate encryption keys, enable AMSI, and restrict external access until systems are updated.

4. What are the new features in Windows 11 for July 2025?

New features include Adaptive Energy Saver, Click-to-Describe image tool in Copilot+, and improved system restore options.

5. Will Microsoft continue layoffs in 2025?

According to internal sources, additional restructuring is possible as Microsoft expands its AI divisions.

🔗 Related Posts (Internal Linking)

Tags: Microsoft Hack 2025, SharePoint CVE-2025-53770, Microsoft Layoffs, AI Strategy, Windows 11 Update, July 2025 Cybersecurity

Source: Microsoft Security Blog, The Verge, Business Insider, Reuters, AP News, CISA

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