Microsoft eyes fresh job cuts in May amid restructuring push

Major tech firms like Amazon and Google are embracing a leaner workforce model by prioritizing technical talent, reducing management layers, and boosting operational agility—a trend Microsoft is now expected to follow in its upcoming restructuring

Microsoft is reportedly considering another round of layoffs as early as May, with a focus on cutting mid-level management roles to streamline its organizational structure. According to reports, the move is aimed at improving team efficiency and increasing the proportion of engineers to non-technical staff across its projects.

Sources familiar with the matter, as per reports, say the company is actively exploring ways to widen managers’ “span of control,” meaning each manager would oversee more direct reports. The proposed changes reflect Microsoft’s intention to simplify hierarchies and reduce the number of program and product managers, a metric known internally as the “PM ratio.”

The strategy follows a growing trend among major tech firms to optimize their workforces by emphasizing technical talent and minimizing layers of management. Amazon, for instance, has introduced a similar model called the “Builder Ratio,” which prioritizes engineers over non-builders. Google also announced a 10% reduction in vice president and managerial roles as part of its broader efforts to boost operational agility.

Microsoft eyes leaner teams

Insiders note that Microsoft’s security unit, led by former Amazon executive Charlie Bell, is driving many of these structural changes internally. Bell is reportedly encouraging practices he championed at Amazon to create more agile and technically driven teams.

Although the number of roles affected in the potential May layoffs remains unclear, sources suggest it could impact a considerable portion of Microsoft's workforce. This would follow a previous round of 2,000 job cuts earlier this year, which Microsoft said were related to performance evaluations. Those layoffs were guided by the company’s internal performance rating system known as the “ManageRewards slider.”

The company has not officially confirmed the restructuring plans, but if implemented, the shake-up could significantly alter Microsoft’s management-to-engineer ratio, streamlining decision-making and boosting innovation speed across product lines.

The shift highlights the tech industry’s ongoing evolution toward leaner, engineering-first operations, as companies seek to stay competitive in a fast-paced, innovation-driven environment.