Microsoft layoffs: Software giant to cut jobs in 2025 targeting underperforming employees

Microsoft is preparing for another round of job cuts, targeting underperforming employees across various departments, including its security division. According to a report by Business Insider, the company is enhancing its performance management strategy, similar to its industry rivals. 

The report cites a statement from a Microsoft spokesperson who confirmed the layoffs but did not specify the number of people affected. “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,” the spokesperson said.

Interestingly, roles vacated due to performance-related departures are often filled again, so Microsoft’s overall workforce size might not decrease significantly. The company had around 228,000 full-time employees as of June 2024.

Managers have reportedly spent months evaluating employees at all levels, even those near the top of Microsoft’s hierarchy. The cuts, said to be broad, will also affect Microsoft’s security division.

This is not Microsoft’s first experience with layoffs in recent years. In 2023, the company cut an estimated 10,000 jobs across several divisions, about 5 per cent of its workforce. That same year, its Xbox gaming division also faced cuts, although the impact was smaller.

In 2024, after acquiring Activision Blizzard, Microsoft let go of nearly 2,000 employees in its gaming division. By summer, further cuts affected the Azure cloud computing business, initially targeting 1,500 roles, with around 1,000 employees ultimately dismissed.

Microsoft’s recent actions reflect a broader trend in the tech industry, where companies are focusing on efficiency and high performance. 

Increased investment in India

Microsoft Chairman and CEO Satya Nadella, on Wednesday unveiled a major initiative to train 500,000 people in rural India in artificial intelligence (AI) skills, in collaboration with India’s Ministry of Electronics and Information Technology (MeitY). This ambitious programme aims to empower communities in underserved regions with cutting-edge tech expertise.

The announcement was made during Nadella’s visit to New Delhi as part of the Microsoft AI Tour, where he emphasised the importance of scaling human skills in AI. “There’s tremendous progress in AI skilling in India,” Nadella remarked, highlighting the country’s growing role in the AI landscape.