Microsoft set to implement new lay-offs, targeting underperforming employees

Microsoft is set to carry out another round of job cuts, this time focusing on employees deemed to be underperforming.

The move aims to streamline operations and retain top-performing talent within the tech giant’s workforce, Caliber.Az reports via foreign media.

A Microsoft spokesperson confirmed the decision, stating, “When employees fail to meet performance expectations, appropriate actions are taken.” The company emphasized its commitment to retaining high performers, with assurances that the company’s global headcount would remain stable despite the cuts.

The restructuring is expected to impact several departments, with a particular focus on the key Security division. The company’s performance evaluations, which assess employees at all levels, are said to even extend to some senior staff members, including those at the upper echelons of the organization, such as level 80.

The tech giant has not disclosed the exact number of employees who will be affected, but the spokesperson reiterated that roles vacated due to performance-based exits are typically filled by new hires. According to estimates, Microsoft’s global workforce stood at approximately 228,000 employees as of mid-2024.

This latest move follows a long history of workforce restructuring under CEO Satya Nadella, who has overseen multiple rounds of lay-offs since his appointment in 2014. One of the most significant cuts came that same year, with 18,000 employees—around 14 per cent of the workforce at the time—being let go.

In 2023, Microsoft also laid off about 10,000 employees across various departments, including its Xbox division. The company continued its restructuring efforts in 2024, following its acquisition of Activision Blizzard, which saw nearly 2,000 gaming roles eliminated.

Further cuts took place during the summer of 2024, with the Azure cloud services division shedding approximately 1,000 employees. September saw additional reductions, particularly within Xbox, where 650 staff members were let go, pushing the total number of gaming-related lay-offs for 2024 to nearly 3,000.

These lay-offs are in line with Microsoft’s strategy of optimizing workforce performance and ensuring its resources align with long-term strategic goals. While the company has traditionally placed a strong emphasis on innovation and growth, these periodic job reductions highlight its stringent focus on maintaining operational efficiency.

By Aghakazim Guliyev