Emphasising its need to maintain high-performance talent, Microsoft has confirmed a “small percentage” of job cuts across various departments based on employee performance.
“At Microsoft, we focus on high-performance talent,” a spokesperson said. “We are always working on helping people learn and grow. When people are not performing, we take the appropriate action.”
The American tech giant said it had been evaluating employees up to level 80, one of its highest tiers, with managers conducting assessments over the past few months.
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While specific numbers of layoffs have not been disclosed, the cuts span the company, including its crucial security division. Microsoft, which had approximately 228,000 full-time employees at the end of June 2024, often backfills roles vacated due to performance issues, minimising the impact on overall headcount.
Despite these cuts, Microsoft’s financial performance remains strong, with a net income margin close to 38 per cent. However, its stock performance has lagged behind its peers, rising only 12 per cent last year compared to the Nasdaq’s 29 per cent gain.
However, it is not just Microsoft that is laying off its employees. The list also includes companies like Google, BlackRock that will steadily slash jobs from various departments. This move by several US companies to cut down on jobs dictates their decision to control their spending, reduce costs, restructure their business or align their resources for new projects.
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