Microsoft is reportedly planning layoffs and is considering performance as a key factor in any potential job cuts, according to reports from Business Insider which cited sources familiar with the matter.
A Microsoft spokesperson confirmed the cuts, Business Insider reported, though they declined to share details on the number of employees being let go.
The firm appears to be taking a stronger stance on performance management in line with its competitors, those familiar with the matter said, with company managers having spent the last few months evaluating staff.
Cuts will happen across the company and will reportedly include layoffs across Microsoft’s security division.
Alternative reporting from CNBC suggested the job cuts will affect less than 1% of employees. Microsoft employed roughly 228,000 people globally as of October 2024, according to Statista.
“At Microsoft, we focus on high-performance talent. We are always working on helping people learn and grow,” a Microsoft spokesperson said in a statement sent to ITPro.
“When people are not performing, we take the appropriate action,” the spokesperson added.
While these cuts would be the first of 2025 for Microsoft, they mark the latest in a series of layoffs at the tech giant. Last year, Microsoft slashed roles in its Azure cloud division.
Announced in June, these cuts hit various cloud departments including Azure for Operators and Mission Engineering segments One source estimated that the extent of layoffs could be as high as 1,500 jobs.
Back at the start of 2023, Microsoft made an even bigger dent in its workforce, announcing a huge round of layoffs that would affect 10,000 roles company-wide.
While 2023 was widely considered a layoff-heavy year across the tech sector, 2024 saw a similar trend continue.
Google and Amazon both kicked off the year with layoffs along with smaller firms such as Duolingo, seeing nearly 11,000 workers laid off globally in January alone.
