Microsoft Announces New Layoffs Targeting Underperforming Employees

The tech giant confirms performance-based job cuts across departments, affecting less than 1% of its workforce while maintaining overall headcount stability.

Microsoft plans to lay off underperforming employees across various divisions, including its critical Security unit.
The layoffs will impact less than 1% of Microsoft’s 228,000-strong workforce, with affected roles likely to be backfilled.
This move continues a pattern of workforce adjustments over the past two years, including 10,000 layoffs in 2023 and further reductions in 2024.
The company emphasizes its focus on high-performance talent and states that performance management evaluations have been ongoing for months.
Despite the layoffs, Microsoft remains financially strong, reporting record earnings in fiscal 2024 and significant investments in AI initiatives.