Microsoft is conducting another round of layoffs, impacting employees across multiple divisions. These cuts specifically target those not meeting performance expectations. Business Insider, citing sources familiar with the matter, reported the layoffs include the company’s security division.
What Microsoft has to say on layoffs
The publication claims that a Microsoft spokesperson confirmed the job cuts but declined to specify the number of employees affected by it. The spokesperson reiterated Microsoft’s dedication to “high performance talent,” signaling a stricter approach to performance management.
“At Microsoft we focus on high performance talent,” the spokesperson was quoted as saying.
“We are always working on helping people learn and grow. When people are not performing, we take the appropriate action,” the spokesperson added.
The spokesperson also noted that roles vacated due to performance issues are often backfilled, suggesting that the overall headcount might not be significantly impacted. Microsoft had roughly 228,000 full-time employees at the end of June.
Reportedly, Microsoft managers have spent recent months evaluating employees across various levels, including some of the highest ranks.
Previous layoffs in Microsoft
This latest announcement marks the third consecutive year of restructuring and layoffs in the tech industry, highlighting the ongoing challenges and adjustments faced by major tech companies, including Microsoft.
In 2023, the company laid off approximately 10,000 employees across various departments, including its Xbox division. Following its acquisition of gaming company Activision Blizzard in early 2024, Microsoft further trimmed its gaming division by nearly 2,000 employees.
Microsoft’s workforce reductions continued throughout 2024. In the summer, the company laid off approximately 1,000 employees from its Azure cloud services division. By September, another round of layoffs impacted the Xbox division, with 650 jobs cut.
