Key Takeaways:
- Microsoft is preparing for another round of job cuts.
- The fresh layoffs will focus on underperforming employees across various divisions.
- Microsoft is committed to retaining high performers and replacing vacated roles.
Microsoft is gearing up for another wave of job cuts, this time targeting employees deemed underperforming. According to a new report from Business Insider, the layoffs will span multiple departments, including the critical security division.
Microsoft has been conducting performance evaluations across the company over several months in order to identify areas for improvement. The exact number of affected employees has not been disclosed. However, the company typically fills roles left vacant by performance-related departures, which means the overall workforce size is unlikely to decrease significantly.
Microsoft is also making it easier for managers to take action against employees who fail to meet performance standards. “At Microsoft we focus on high performance talent. We are always working on helping people learn and grow. When people are not performing, we take the appropriate action,” a Microsoft spokesperson said in a statement.
Microsoft’s approach to streamlining operations through workforce reductions
In recent years, Microsoft has carried out strategic job cuts across multiple sectors to streamline operations and boost efficiency. In 2023, the company laid off about 1,000 employees across various divisions, including its Xbox gaming division. After acquiring Activision Blizzard for $75.4 billion, Microsoft cut nearly 2,000 roles in its gaming division in early 2024.
In the summer of 2024, Microsoft laid off approximately 1,000 employees from its Azure cloud services division. Then, in September, the company made additional cuts, letting go of 650 employees from the Xbox division. These cuts increased the total number of gaming-related layoffs for the year to almost 3,000.
Overall, these layoffs reflect Microsoft’s strategy to optimize its workforce and adjust to changing market conditions. The company is also focused on prioritizing innovation and growth while ensuring operational efficiency.