Layoffs at large tech companies are becoming more frequent every day. Microsoft is currently preparing for yet another round of layoffs. According to the company, it plans to fire more workers soon, with a particular emphasis on those whose performance falls short of expectations.
Although the company has acknowledged that underperforming employees are being monitored, it has not yet disclosed how many employees will be impacted by this change.
Which divisions will be impacted?
Several departments, including the Security division, which is vital to Microsoft’s operations, are anticipated to be affected by the layoffs, according to reports. According to sources, some senior employees, including those at Microsoft’s level 80, may even be affected by the layoffs.
The organization intends to fill these open positions with new hires, indicating that its worldwide workforce will stay constant. Microsoft currently employs 2,28,000 people worldwide.
12000 jobs were cut down in last 2 years
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 several rounds of layoffs since he was appointed in 2014. The first was a big one that year, when 18,000 workers, comprising about 14 per cent of the workforce 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 divisions, including Xbox, were let go in 2023. In early 2024, the company laid off almost 2,000 gaming jobs after acquiring Activision Blizzard.
Total layoffs in tech sector
In 2024, more than 1,200 tech companies gave pink slips to about 2,60,000 workers, with Intel and Tesla laying off the most. According to TechCrunch’s tech layoffs tracker, as of January 2025, only smaller tech companies have chosen to lay off workers.