
Major Service Outage Disrupts M365 Users
On January 21–22, 2026, Microsoft experienced a widespread cloud services disruption that affected multiple core offerings, including Microsoft 365 (Office 365), Microsoft Teams, and to a lesser extent Azure cloud services.(Microsoft Service Health)
What Happened?
Users across multiple regions—including the United States and Canada—reported significant problems accessing Microsoft 365 services, such as Teams, Outlook, and account sign-ins. Real-time outage monitoring services tracked thousands of reports of degraded or unavailable service conditions throughout the day. (IsDown)
According to Tom’s Guide, more than 1,000 reports of Microsoft 365 issues and 500+ reports for Teams came in early in the outage, which began around 9:00 a.m. Pacific Time on January 21. Microsoft acknowledged the incident on its official status feed and via social media, citing a possible third-party networking issue as an initial cause and stating that teams were investigating and assessing the broader impact. (Tom’s Guide)
While the core Microsoft 365 services saw the majority of reported problems, some Azure customers also reported disruptions, particularly to services like virtual machines, dashboards, and APIs—though third-party outage checkers indicated no confirmed broad Azure outage at this moment. (IsDown)
Services Impacted
- Microsoft 365/Office 365 – Major impact with degraded performance and partial downtime for apps including Teams and Outlook. (IsDown)
- Microsoft Teams – Users reported connection and loading failures. (Tom’s Guide)
- Azure Cloud Services – Some user reports indicated issues, but official status pages currently show Azure as generally operational. (IsDown)
Third-party monitors also showed ongoing issues for Microsoft 365 into January 22, with hundreds of user reports indicating degraded performance or inability to access cloud-based applications. (IsDown)
Root Cause & Microsoft’s Response
Microsoft’s initial messaging pointed to a third-party networking issue affecting both Microsoft 365 and adjacent cloud services. While the company has not publicly confirmed a final root cause, the ongoing investigation suggests network infrastructure or inter-service dependency failures may have triggered cascading effects across cloud systems. (Tom’s Guide)
Microsoft encouraged affected users to monitor the Microsoft 365 Admin Center or the official status page for continuous updates and detailed incident notifications. (Tom’s Guide)
What Users Can Do
- Check official status via your Microsoft 365 Admin Center or Azure Service Health dashboard. (Microsoft Azure)
- Monitor outage maps and real-time reports from independent aggregators to validate local impact. (IsDown)
- Subscribe to alerts for your services in Azure Service Health to receive incident notifications and mitigation guidance. (Microsoft Azure)
Industry Impact
Such large-scale outages highlight the reliance of enterprises on cloud providers like Microsoft for critical business operations. Even short disruptions can translate into productivity losses across sectors that depend on cloud-hosted collaboration tools and infrastructure.
As of the latest available data, most services appear to be in the process of recovery, but Microsoft continues to provide updates as the situation evolves.
**UPDATE**
Microsoft has been working on the issue with some progress, but issues still remain. See below for the latest updates.
Jan 23, 2026, 8:36 AM PST
While we’re observing some recovery after rolling back the impacting change, we’re exploring options to expedite the resolution.


