Microsoft says it will fire more employees who are underperforming

Microsoft is planning to terminate additional staff. According to sources acquainted with the situation, the action will largely target underperforming personnel. While the corporation verified the news, it did not provide the specific number of employees affected. Here are some essential details.

A Microsoft spokeswoman recognized the impending layoffs and reaffirmed the company’s emphasis on high-performing employees. The representative emphasized that when staff fail to fulfill performance objectives, appropriate measures are implemented. As part of its strategy, Microsoft analyzes staff performance at several levels, including some senior personnel at level 80. According to the sources, these employment layoffs will have an impact on a number of areas, including the company’s key Security section.

The representative also stated that posts left vacant due to performance-based departures are frequently filled with new recruits, implying that Microsoft’s overall workforce may not alter significantly. As of mid-2024, the corporation had around 228,000 employees globally.

This decision is consistent with Microsoft’s long history of personnel downsizing, which it has continued under the leadership of CEO Satya Nadella. Since taking CEO in 2014, Nadella has supervised many waves of layoffs, including a large cut the same year that affected 18,000 people, or about 14% of Microsoft’s overall staff at the time.

In recent years, Microsoft has continued to undertake targeted employment cuts across several areas. In 2023, the firm laid off over 10,000 people across many areas, including Xbox. Following the high-profile acquisition of Activision Blizzard, Microsoft let off over 2,000 people from its gaming group in early 2024. More layoffs occurred throughout the summer, affecting around 1,000 employees in the company’s Azure cloud services segment.

In September 2024, Microsoft decreased its employment even more, with 650 layoffs in its Xbox business, bringing the total number of job cutbacks from its gaming section to over 3,000 for the year.