A bad news is coming from the world’s top technology company, Microsoft. The company announced that it plans to cut jobs in 2025 and lay off employees who are not performing in line with the company’s performance. It has not yet been decided how many employees will be laid off.
According to a CNBC report, the decision is similar to the strategy adopted by other tech giants. A Microsoft spokesperson confirmed the move but did not say how many employees would be affected. At Microsoft, we focus on high-performing talent, the spokesperson said. We are always working to help people learn and grow. When people don’t work, we take appropriate action.
Company to be Affected
According to the report, sources revealed that less than one percent of the workforce will be affected by the layoffs. The company often backfills positions vacated by such layoffs. This means there may not be a large reduction in the total number of employees of Microsoft. As of June 2024, the company had approximately 228,000 full-time employees.
There have been Layoffs Before
Microsoft made layoffs in its gaming division. This happened in May last year. According to reports, the tech giant has laid off several developers, including Redfall developer Arkane Austin, Hi-Fi Rush developer Tango Gameworks, Alpha Dog Studios and others.
In 2024, Microsoft laid off approximately 2,000 employees in its gaming division following its acquisition of Activision Blizzard. Later that year, the company’s Azure cloud computing business saw layoffs. The moves reflect a broader trend in the technology industry to prioritize efficiency and high performance as companies grapple with economic uncertainty and evolving market demands.
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