Microsoft to lay off underperforming employees in 2025, cutting jobs

Photo: Reuters

Microsoft is planning another round of job cuts in 2025, targeting employees who are not meeting performance expectations. This move will affect various departments, including the important security division. Microsoft’s decision follows a trend seen in the tech industry, where many companies are focusing on becoming more efficient and making sure employees are performing at their best.

According to Business Insider, a spokesperson from Microsoft confirmed the layoffs but did not provide details on how many employees would be impacted. The spokesperson explained, “At Microsoft, we focus on high-performance talent. We’re always working on helping people learn and grow. When people are not performing, we take appropriate action.”

One interesting point is that the positions left open after these layoffs are often filled again, meaning that the total number of employees at Microsoft might not decrease by a large amount. As of June 2024, the company employed around 228,000 full-time workers.

Managers have been spending a lot of time over the past few months assessing the performance of employees at every level, even those in top positions. These layoffs will not only impact Microsoft’s general departments but also its security division.

This is not the first time Microsoft has made layoffs. In 2023, the company cut around 10,000 jobs, which was about 5% of its workforce. That year, even the Xbox gaming division saw some job cuts, although the impact there was smaller. Then, in 2024, after Microsoft bought Activision Blizzard, nearly 2,000 workers in the gaming division were let go. Later in 2024, Microsoft made more cuts in its Azure cloud computing business, initially planning to cut 1,500 jobs, but ended up letting around 1,000 employees go.

Microsoft’s actions are part of a bigger trend in the tech industry, where companies are working hard to be more efficient and make sure employees are meeting performance standards.

Meanwhile, Microsoft is also investing heavily in India. The company’s Chairman and CEO, Satya Nadella, announced a major project to help train 500,000 people in rural India in artificial intelligence (AI) skills. This program is being launched in collaboration with India’s Ministry of Electronics and Information Technology (MeitY). The goal is to teach people in underserved areas how to use the latest technology, helping them build skills for future jobs.

Nadella made this announcement during his visit to New Delhi as part of the Microsoft AI Tour. He spoke about the importance of teaching people how to use AI, saying, “There’s tremendous progress in AI skilling in India,” highlighting the country’s growing role in the world of artificial intelligence.

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