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Microsoft readies for new round of layoffs, expected to happen ‘soon’: Report

Over 2,28,000 employees worked full-time at Microsoft up till June last year.

Satya NadellaSatya Nadella, who took over as chief executive of Microsoft in 2014, at the tech giant’s campus in Redmond, Wash., Feb. 7, 2023. Microsoft's all-in moment on artificial intelligence has been defined by billions in spending and a CEO counting on technology with huge potential and huge risks. (Kyle Johnson/The New York Times)

Microsoft could be kicking off the new year with a fresh round of layoffs. The software giant has plans to cut jobs soon, according to a report by Business Insider.

The reductions are expected to come from across the company, including its crucial cybersecurity division. Taking a cue from its competitors, Microsoft is reportedly taking a stricter line with the performance of its employees.

Performance reviews have been conducted by managers at the company over the last few months, where the competence of employees was evaluated up to Level 80.

The impending layoffs were confirmed by a Microsoft spokesperson.

“At Microsoft we focus on high performance talent. […] We are always working on helping people learn and grow. When people are not performing, we take the appropriate action,” the spokesperson was quoted as saying.

However, the spokesperson also said that the layoffs would not affect the company’s overall head count as Microsoft usually hires people to fill the roles of people who lost their jobs.

Over 2,28,000 employees worked full-time at Microsoft up till June last year.

Around 2,60,000 employees were handed pink slips by over 1,200 tech companies in 2024, with the maximum number of job cuts coming from Intel and Tesla. As of January 2025, only smaller tech businesses like Altruist, Aqua Security, SolarEdge Technologies, and Level have decided to fire employees, according to the tech layoffs tracker by TechCrunch.

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