'When people are not performing...' says Microsoft as it confirms job cuts across all its divisions

Microsoft

2025 hasn’t begun on a great note for Microsoft employees. The company has confirmed that it is cutting a small percentage of jobs across the board, according to a report by CNBC. Microsoft said that the employees who are being laid off are because of their performance.

“At Microsoft we focus on high-performance talent,” a Microsoft spokesperson told CNBC. “We are always working on helping people learn and grow. When people are not performing, we take the appropriate action,” the spokesperson added.

The report also indicates that approximately 1% of Microsoft’s global workforce is being terminated in the latest round of job reductions. Microsoft currently employs approximately 2.28 lakh individuals worldwide, as estimated in June 2024.

Since 2023, Microsoft has implemented job cuts, commencing with the termination of 10,000 employees. While the layoffs have continued, the frequency has decreased compared to the initial wave.

Overall, the tech industry across the world lost lakhs of jobs in 2024. Companies like Google, Microsoft had warned employees about reducing number of jobs. While no guidelines have been laid out for 2025 — it’s still very early in the year — one can expect further reductions in jobs with Microsoft’s latest round of layoffs.