Microsoft to target underperforming employees with new layoffs: Report

A number of divisions will be impacted by Microsoft's planned layoffs targeted at underachievers. Despite continuous layoffs, the corporation is apparently dedicated to keeping top performers and filling open positions, showing a stable global staff.

According to a Business Insider article, Microsoft plans to start laying off workers again, namely those who are considered to be performing poorly. The software company has confirmed the upcoming layoffs on multiple occasions, but it has not disclosed the precise number of people who would be impacted.

According to the report, a Microsoft representative confirmed the action and said the company is still dedicated to keeping top talent. The representative went on to say that "appropriate actions are taken when employees fail to meet performance expectations."

Effect on Important Divisions
The crucial Security division would be among the departments affected by the reorganization, the paper stated. All organizational levels are subject to Microsoft's performance reviews, which are said to even have an impact on certain senior employees at level 80.

Microsoft stated that positions left empty by performance-based departures are frequently filled by new hires in spite of these reductions. According to the analysis, the corporation may maintain a relatively stable global workforce, with an anticipated 228,000 employees as of mid-2024.

Nadella's Leadership in Layoffs
This most recent action is in line with Microsoft's history of reorganizing its workforce under CEO Satya Nadella. Nadella has been in charge of many rounds of layoffs since he was appointed in 2014. The first was a big one that year, when 18,000 workers, or about 14% of the total at the time, were let go.

Strategic layoffs have occurred in a number of industries in recent years. About 10,000 workers from Microsoft's various companies, including Xbox, were let go in 2023. In early 2024, the corporation laid off about 2,000 gaming jobs after acquiring Activision Blizzard.

In the summer of 2024, more layoffs occurred, resulting in the termination of almost 1,000 workers from the Azure cloud services division. Additional layoffs were implemented in September 2024, when 650 employees from the Xbox division were let go, bringing the total number of gaming-related layoffs for the year to nearly 3,000.

Strategic Priority During Reorganization
This reorganization highlights Microsoft's emphasis on maximizing employee performance and coordinating resources with strategic objectives. The company has always placed a high priority on innovation and expansion, but these sporadic layoffs are a reflection of its strict attention to operational effectiveness.