With big tech companies, layoffs are getting more common by the day. Now, Microsoft is gearing up for another round of layoffs. The company states that it will soon lay off more employees, this time around the focus will be on those whose performance doesn’t meet the mark. The company has confirmed that underperforming employees are under the radar, however it has not yet shared the exact number of employees who will be affected by this move.
As per reports, the layoffs are expected to impact multiple departments, including the Security division, which plays a critical role in Microsoft’s operations. Sources also revealed that the lay offs can even impact some senior employees, even those working at level 80 in Microsoft. The company plans on replacing these vacant spots with new hires, suggesting that its global headcount will remain similar. Currently, over 2,28,000 employees work for Microsoft globally.
A Microsoft spokesperson spoke about the layoffs and said that the company is committed to retaining high-performing talent. “When employees fail to meet performance expectations, appropriate actions are taken,” the spokesperson stated.
This move is part of Microsoft’s broader strategy of workforce optimisation. This is something that has been associated with CEO Satya Nadella for a while now. Under Nadella’s leadership, Microsoft has undertaken several rounds of layoffs to realign its business priorities.
Back in 2023, the company laid off around 10,000 employees across various divisions, including Xbox. After that, when it acquired Activision Blizzard, nearly 2,000 gaming division roles were cut in early 2024. By September 2024, the total layoffs in the gaming sector had reached 3,000, with 650 employees affected in a single round of cuts targeting Xbox. Only time will tell how many employees are affected this time.