Microsoft has announced another phase of layoffs, focusing on employees not meeting performance expectations. Divisions such as security are reportedly affected. Business Insider cites sources confirming the layoffs, with Microsoft choosing not to disclose the exact number of employees impacted.
The company spokesperson reiterated Microsoft’s commitment to high performance talent and explained that appropriate action is taken when employees do not meet standards. The company also emphasized its approach to helping employees grow through learning and performance management.
Vacated Roles to Be Backfilled
Although the layoffs target underperformers, Microsoft clarified that roles vacated during this process are often backfilled. This strategy suggests that the overall employee count, which stood at approximately 228,000 full-time employees as of June, might not see significant changes.
Microsoft managers have reportedly spent months evaluating staff at various levels, including top positions, as part of the company’s stricter approach to performance management.
A History of Workforce Reductions
This marks the third consecutive year of layoffs for Microsoft. In 2023, the company eliminated around 10,000 jobs across multiple divisions, including Xbox. Following the acquisition of Activision Blizzard in early 2024, Microsoft cut nearly 2,000 jobs from its gaming division.
The workforce reductions continued through 2024, with significant layoffs during the summer, impacting 1,000 Azure cloud services employees. By September, another 650 jobs were cut from the Xbox division.
The Broader Context
Microsoft’s ongoing layoffs reflect broader challenges in the tech industry, where companies are continuously adjusting to evolving market demands. While these reductions highlight the company’s focus on performance, Microsoft’s practice of backfilling roles may help mitigate long-term impacts on its workforce and operations.
As tech giants navigate these changes, Microsoft’s approach underscores the importance of adaptability and efficiency in maintaining its competitive edge.
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