Microsoft To Slash Jobs Again, Targeting Underperforming Employees

Microsoft is set to implement job cuts soon, with a particular focus on employees whose performance does not meet the company’s high standards. 

The company had already cut 10,000 jobs in 2023 and 4,000 in 2024, according to Investing.com.

Two sources familiar with the plans revealed that the tech giant is taking a more aggressive stance on performance management, similar to some of its competitors in the industry, according to Business Insider. 

While a Microsoft spokesperson confirmed the upcoming layoffs, they declined to specify how many employees would be affected. 

“At Microsoft, we focus on high-performance talent,” the spokesperson said. “We are always working on helping people learn and grow. When people are not performing, we take the appropriate action.”

The spokesperson also noted that Microsoft typically backfills roles when people leave due to performance-related issues, meaning the overall headcount could remain relatively stable. 

As of June, Microsoft employed approximately 228,000 full-time staff globally.

According to sources, the company has been conducting thorough evaluations of employees, ranging up to the highest levels, including level 80 — one of the company’s most senior ranks.

Managers have reportedly spent the past few months assessing performance across all divisions, including its vital security unit, which has seen cuts as well.

The decision to take a harder look at underperforming employees occurs as part of a wider trend in the tech industry, where many companies have tightened their focus on efficiency and performance in the wake of economic challenges and market shifts.