Microsoft Confirms Microsoft 365 Outage Has Been Resolved

Microsoft has confirmed that a widespread outage impacting Microsoft 365 services, including Outlook, Teams and other core workplace tools, has been resolved following hours of disruption that left thousands of users unable to work.

The issue surfaced on Thursday afternoon, with customers across multiple regions reporting problems accessing Microsoft’s cloud-based services. According to outage-tracking site Downdetector, complaints began rising sharply around 3 p.m. ET, peaking at more than 16,000 reports from affected users.

Outlook, Teams and Core Tools Affected

Users described being locked out of email, video conferencing and collaborative platforms critical to day-to-day operations. Microsoft acknowledged the incident on its service status page, noting that users “may be seeing degraded service functionality or be unable to access multiple Microsoft 365 services.”

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By 4:14 p.m. ET, Microsoft said it had “restored the affected infrastructure to a healthy state.” However, the company cautioned that it was still rebalancing traffic across its systems to ensure full stability, suggesting that some customers could continue experiencing intermittent issues.

That warning appeared justified, as frustrated users continued posting on social media hours later. “We cannot even email. This is not fixed,” one user wrote on X, while others complained that the outage had disrupted meetings, deadlines and business workflows.

Downdetector is tracking an ongoing issue that is impacting Microsoft and other services. Stay up to date at https://t.co/6j0AsSYe1e pic.twitter.com/0ap3rh7Wgp

— Downdetector (@downdetector) January 22, 2026

Calls for Compensation Grow Louder

As the disruption dragged on, some customers called on Microsoft to offer compensation, arguing that the outage caused lost productivity. The demands echoed recent industry precedents: just last week, Verizon offered a $20 credit to customers affected by a major service outage.

Microsoft did not immediately comment on whether affected Microsoft 365 subscribers would receive credits or refunds.

In a statement to CBS News on Thursday night, a Microsoft spokesperson said the company was continuing to address the issue and directed customers to follow updates via the official Microsoft 365 Status account on X.

A Reminder of Cloud Dependency Risks

The incident has reignited concerns about the risks of reliance on cloud-based infrastructure. Microsoft 365 is used by millions of businesses, schools and individuals worldwide, meaning even short outages can have outsized consequences.

The disruption also brought back memories of July 2024, when a flawed update to CrowdStrike antivirus software triggered global outages affecting Microsoft systems. That incident led to thousands of flight delays, hospital disruptions and banking issues, underscoring how tightly interconnected modern digital infrastructure has become.

Services Restored, Questions Remain

While Microsoft says services are now fully restored, the outage highlights the vulnerability of even the world’s largest tech platforms. For businesses that rely on Outlook and Teams as mission-critical tools, the episode serves as a reminder to maintain contingency plans for digital downtime.

As users log back in and workflows return to normal, attention will now turn to whether Microsoft offers compensation—and what steps it takes to prevent a similar disruption in the future.