Microsoft confirms job cuts across departments, cites 'performance issues'

For Microsoft employees, the start of 2025 has proved to be rather dim. The company has confirmed a small round of job cuts across various departments, according to a report by CNBC. Microsoft stated that these layoffs are performance-based, targeting employees who haven’t met expectations.

“At Microsoft, we prioritise high-performing talent,” a company spokesperson told CNBC. “We are constantly focused on helping people learn and grow. When individuals are not performing, we take the necessary action.”

The report suggests that around 1% of Microsoft’s global workforce is being let go in this latest round of layoffs. As of June 2024, Microsoft employed approximately 2.28 lakh people worldwide. This is not the first time Microsoft has reduced its workforce. In 2023, the company announced a large-scale layoff of 10,000 employees, marking the start of its restructuring efforts. While job cuts have continued since then, the pace has slowed compared to the initial wave.

The broader tech industry also saw significant layoffs in 2024, with lakhs of jobs lost globally. Companies like Google and Microsoft had already warned employees about job reductions. Although it’s still early days for 2025, Microsoft’s latest layoffs may signal further workforce adjustments in the months to come.