Microsoft is winding down The Garage, its 17-year-old employee innovation programme that allowed staff to turn side projects into working products, bringing an end to a companywide initiative that also hosted its annual Global Hackathon.
The decision affects a programme that grew from a small experiment within Microsoft's Office Labs in Redmond, Washington, in 2009 into a network of maker spaces spanning 15 regions, including India, Israel, China, Canada and the US. GeekWire first reported the closure, citing an internal FAQ circulated to employees.
Microsoft said The Garage would no longer operate as a centralised function, arguing that experimentation had become part of everyday work across its teams.
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A company spokesperson said Microsoft regularly reviews how its physical spaces are used and is making changes to some Garage locations.
The company has not identified which facilities will be affected, including its flagship Redmond space.
Some locations could face restrictions from October 23. Microsoft also declined to comment on the impact on Garage employees, while the future of the Global Hackathon remains uncertain. The internal FAQ says the event is being reimagined, with further details to follow.
From Employee Side Projects To Microsoft Products
The Garage became a showcase for employee-led innovation, particularly after Satya Nadella took over as chief executive in 2014. He regularly attended hackathons, where staff could demonstrate projects to senior executives.
Microsoft's first companywide hackathon, held in July 2014, attracted more than 11,000 registrants from 80 countries.
Among the notable projects associated with the programme were Seeing AI, which helps people who are blind or have low vision interpret their surroundings, and the Xbox Adaptive Controller, designed to make gaming more accessible.
Mouse Without Borders, which lets users control multiple computers with one keyboard and mouse, also emerged from employee experimentation.
Closure Comes Amid Wider Cost Controls
The shutdown comes as Microsoft invests heavily in artificial intelligence infrastructure while tightening spending elsewhere. Employees have linked the decision to broader cost-cutting, although the company has not explicitly cited savings as the reason.
Microsoft also closed employee libraries in Redmond, Hyderabad, Beijing and Dublin in January, describing the move as a shift towards AI-powered learning. Its Redmond visitor centre closed the following month.
Microsoft says it intends to preserve The Garage's legacy through new approaches to innovation, but has not yet explained how those efforts will work.
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