Microsoft is gearing up for another round of job cuts. This is set to affect around 3 per cent of its global workforce. This means more than 6,000 employees across various roles and regions could be let go. It’s the company’s biggest round of layoffs since it slashed 10,000 jobs in 2023.
The move comes as even strong-performing tech companies are cutting jobs—just last week, cybersecurity firm CrowdStrike said it would lay off 5 per cent of its staff, showing how workforce reductions are becoming more common across the industry.
While Microsoft hasn’t shared details about which roles or departments were impacted. The tech giant said the layoffs are part of its long-term plan to stay flexible and focused on areas like AI, cloud computing, and evolving customer demands.
Microsoft is still in strong financial shape and reported a 25.8 billion dollars net income for the quarter ending in April and beating analyst expectations. It also shared a positive outlook for the near future. However, the company says the restructuring is aimed at cutting down on management layers and improving efficiency—similar to what Amazon recently did when it trimmed jobs, pointing to “unnecessary layers” in its operations.
The layoffs also align with changes in how Microsoft handles employee performance. According to documents reviewed by Business Insider, the company has introduced a two-year rehire ban for workers let go due to performance-related issues.
Microsoft has also introduced a new “good attrition” metric to track and encourage the exit of underperforming employees. The approach is similar to Amazon’s controversial “unregretted attrition” model and reflects Microsoft’s focus on stricter performance management.
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