Microsoft has announced that starting next year, employees will be required to work in an office three days a week. This policy will initially apply to employees near Microsoft’s headquarters in Redmond, Washington, and the Puget Sound area, with plans to expand to other U.S. locations and international offices.

The company cited the need for employees to work together in person to build AI products and solve challenging problems. Despite recent layoffs, Microsoft emphasized that this shift in policy is not about reducing headcount, but about meeting customer needs and fostering collaboration among employees. The announcement comes after Microsoft reported better-than-expected financial results, bumping the company’s market cap past $4 trillion.