[UPDATED] Microsoft 365 Global Outage Knocks Down Outlook, Teams, Office, Azure & More

[UPDATE, January 23, 2026 | 02:48 IST] More than 12,000 users reported issues with Microsoft 365, Outlook, Teams, Microsoft Store, Azure, and more on the outage tracking site Down Detector. On X, Microsoft has confirmed the issue on X and said it was investigating. At the time of writing, Microsoft has shared an update on X, noting that it has restored the affected infrastructure to a healthy state; further load balancing is required to mitigate the impact. The company is apparently directing traffic to alternate infrastructure to achieve recovery. You can get more info at https://status.cloud.microsoft or under MO1221364 if accessible.

[ORIGINAL STORY] Microsoft 365 users ran into widespread service disruptions today, affecting core apps like Teams, Outlook, and cloud-based Office tools.

According to How-To Geek, the outage triggered a sharp rise in user complaints across multiple Microsoft platforms. Downdetector recorded significant spikes for Teams, Microsoft 365, the Microsoft Store, and Xbox Live.

Cloud services went down, desktop apps kept working

The incident primarily impacted web and cloud versions of Word, Excel, PowerPoint, and other Microsoft 365 services. Users reported problems signing in, syncing files, and accessing shared documents.

Desktop Office apps continued to open local files normally, which helped limit disruption for users who rely on offline workflows. However, cloud-dependent features, including collaboration and autosave, remained unavailable for a period.

Several users also reported issues with Clipchamp, the video editor that ships with many new Windows PCs, which failed to open existing projects during the outage.

Microsoft points to third-party networking issue

Microsoft confirmed it had identified the cause and moved quickly to restore services. The company explained that a third-party internet service provider triggered the disruption through a routing configuration problem.

“We’ve determined this issue was a result of a third-party ISP Autonomous System Number (ASN) routing configuration issue,” Microsoft said. The company added that the third party took corrective action and that the issue no longer occurs.

Shortly after the fix rolled out, many users reported that Teams, Outlook, and other Microsoft 365 services began working again.

The outage highlights the importance of local backups and contingency plans when cloud platforms fail. Even short disruptions can block access to shared files, meetings, and communication tools that many businesses depend on daily.

This incident follows other recent Microsoft service issues, including problems that affected Microsoft Copilot users in the US.

Despite the disruption, Microsoft continues to expand its ecosystem. The company plans to add watermarks to AI-generated content in Copilot for Microsoft 365 and is also developing new search filters for Outlook.

For now, Microsoft says all affected services have stabilized, but today’s outage serves as another reminder that even major cloud platforms remain vulnerable to third-party network failures.