Microsoft to lay off underperforming employees in workforce restructuring move
What's the story
Microsoft is planning to lay off a bunch of its underperforming employees, according to Business Insider. The tech giant has confirmed the development but has not revealed how many workers will be impacted by the move. A Microsoft spokesperson acknowledged the impending layoffs and highlighted the company's commitment to high-performance talent.
Assessment approach
Microsoft's performance evaluation strategy
Microsoft's strategy includes evaluating employee performance at different levels, all the way to senior employees at level 80. Multiple departments are expected to be impacted by these job cuts, including the company's critical Security division. The spokesperson also added that roles left vacant due to these performance-based exits are usually filled with new hires, meaning Microsoft's total headcount may not be much affected.
Past layoffs
A look at Microsoft's history of workforce restructuring
This latest move aligns with Microsoft's practice of workforce restructuring under CEO Satya Nadella's leadership. Since taking office in 2014, Nadella has overseen multiple rounds of layoffs, including a major cut that same year affecting 18,000 employees—nearly 14% of the company's total workforce at the time. In recent years, Microsoft has continued to implement strategic job cuts across various sectors.
Recent reductions
Microsoft's recent layoffs and acquisitions
In 2023, Microsoft laid off around 10,000 employees across divisions, including Xbox. After its high-profile Activision Blizzard acquisition in early 2024, the company laid off nearly 2,000 employees from its gaming division. More cuts followed in the summer with nearly 1,000 people from its Azure cloud services division being affected. In September 2024 alone, Microsoft further reduced its workforce with 650 layoffs hitting its Xbox division.