Washington, DC, US: Microsoft, one of the world’s largest technology companies, has started another round of job cuts. The move is said to be part of the company’s efforts to reduce costs and cope with the current economic challenges.
The layoffs will affect employees in various departments, including security, sales, gaming, and experiences. According to a report by Business Insider, less than 1 percent of Microsoft’s workforce will be impacted. The company has not disclosed the exact number of employees who will be let go.
Microsoft’s consulting division has also paused hiring and will delay filling vacant roles. The company is taking steps to reduce costs, including cutting marketing and external resource expenses by 35 percent. The move is aimed at streamlining operations and prioritising high-performance talent.
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The company has confirmed that it will also be dismissing underperforming employees. Microsoft evaluates staff performance across multiple levels, including senior employees, as per a CNBC report.
A Microsoft spokesperson confirmed the upcoming layoffs and highlighted the company’s commitment to maintaining high-performance talent.
The spokesperson emphasised that when employees do not meet performance expectations, necessary actions are taken. As part of its strategy, Microsoft assesses employee performance at various levels, including some senior employees at level 80.
This is not the first time Microsoft has laid off employees. In early 2023, the company eliminated 10,000 jobs as part of a cost-cutting strategy. In January 2024, Microsoft’s gaming division laid off 1,900 workers following its acquisition of Activision Blizzard.
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Again in September 2024, Microsoft’s gaming division laid off approximately 650 employees. This decision was made to align the team’s structure after the acquisition and to manage the business for long-term success. However, the job cuts mainly affected corporate and supporting roles, rather than game development.
Microsoft is not the only tech company to be affected by the current economic challenges. Many other companies, including Meta, have announced plans to reduce their workforce.
