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Microsoft Tightens Workforce with Fresh Layoffs Over Performance Issues

Microsoft

Business Honor
24 April, 2025

Less than 1% of staff affected as company stresses efficiency and excellence.

Microsoft has started yet another round of reductions targeting the workers whose work has been less than satisfactory as far as company expectations are concerned. This is another step by Microsoft to deal with its top performers.

Less than 1% of Microsoft's workforce, which stood at about 228,000 as of June 2024, will be affected by the layoffs. The managers have been carrying out performance assessments at all levels, including the senior levels, for several months. Departments like the security department are among those that will be impacted by these layoffs.

In the rare instances, employees were allegedly sent notices of termination without severance, and their corporate system and office access was turned off at once. Poor performance has been listed as the cause for termination in all notices.

In spite of these conditions, Microsoft actively replaces firing employees from within because of performance issues, with an effort to maintain its overall headcount level. The company prefers high performers and ongoing employee development.

This recent action is an extension of previous terminations in 2023 and 2024, when Microsoft cut its staff by about 10,000 and 1,900 workers, respectively, as part of restructuring.

Microsoft's action is part of a wider industry trend where companies are putting more emphasis on operational excellence and performance management due to changing market conditions.