Microsoft has terminated two software engineers who disrupted company events last week to protest the tech giant's artificial intelligence contracts with the Israeli military, according to internal documents viewed by CNBC.

The employees—Ibtihal Aboussad, based in Canada, and Vaniya Agrawal, an Indian-American engineer—interrupted speeches during Microsoft's 50th-anniversary celebrations in Redmond, Washington.

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Aboussad confronted Microsoft AI CEO Mustafa Suleyman during his presentation, shouting, "You claim that you care for using AI for good, but Microsoft sells AI weapons to the Israeli military. Fifty thousand people have died, and Microsoft powers this genocide in our region." She was quickly escorted out. "I did not sign up to write code that violates human rights," she later stated in an email sent to Suleyman and other executives.

At a separate event, Agrawal similarly interrupted CEO Satya Nadella's speech, and later, in an email also sent to Microsoft executives, accused the company of being "complicit" as a "digital weapons manufacturer that powers surveillance, apartheid, and genocide." She added, "By working for this company, we are all complicit."

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According to CNBC, Microsoft fired Aboussad on Monday for "willful misconduct" and "deliberate disruption", citing her protest and email as admissions of intent to disrupt the event. Agrawal had planned to resign on April 11 but was terminated early, with Microsoft making her resignation "immediately effective".  

The company defended its decision, stating employees have internal channels to raise concerns and that protests causing "business disruption" violate policy. As per the CNBC report, a Microsoft spokesperson said, "We provide many avenues for all voices to be heard... we ask that this be done in a way that does not cause a business disruption."  

The firings come as Microsoft faces broader scrutiny over its military contracts and external pressures, including new US tariffs criticised by former CEO Steve Ballmer. The protests have overshadowed the anniversary celebrations, shifting attention to employee dissent over Microsoft's role in global conflicts.