It will continue to work using Rosetta emulation, but Microsoft said in relation to Teams, "We are working on universal app support for M1 Macs and will share more news as our work progresses." In other words, it's not quite ready. It includes the three core apps Writer, Calc, and Impress that replace Words own Word, Excel.
You may have noticed one very popular app is missing from this update: Microsoft Teams. When it comes to free office suites, LibreOffice is right up among the best. If you have automatic updates enabled then this optimization update should already be downloading and installing. The optimized apps include Outlook, Word, Excel, PowerPoint, and OneNote, all of which Microsoft says "will run faster and take full advantage of the performance improvements on new Macs." So any Office users who own the M1 MacBook Air, MacBook Pro, or Mac mini will benefit. This week, Microsoft released new versions (Opens in a new window) of many of its Microsoft 365 apps that run natively on Apple M1. One month on, and Microsoft Office is now optimized for running on Apple's M1 devices. Last month, Microsoft reacted quickly to Apple's shift to ARM chips in Macs by releasing a beta of Office that was compatible.
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