Microsoft announces another round of layoffs.
Microsoft is implementing additional staff cuts, this time seemingly based on employee performance.
Microsoft has been dealing with financial challenges that have led to layoffs in the tech industry. After reducing its workforce by 10,000 employees (approximately 5%) in January 2023, the company laid off at least 2,500 employees again in June 2024. Now, just a week away from the start of 2025, Microsoft has confirmed a new round of cuts affecting less than 1% of its staff, which numbered 228,000 employees six months ago.
The company has stated that it focuses on high-performing talent and is committed to helping its employees learn and grow. In a statement, Microsoft indicated that the layoffs may be part of a regular restructuring effort rather than a response to its financial performance.
Despite reporting a 12% increase in revenue in the last quarter, outperforming competitors like Amazon and Google by approximately one percentage point, Microsoft’s stock has not satisfied investors. Over the past year, the company’s shares have grown by 12.98%, compared to 37.06% for Google and an impressive 46.75% for Amazon. However, it is important to note that Microsoft has by far the largest market capitalization among the three cloud giants, reaching $3.156 trillion, in contrast to Google’s $2.382 trillion and Amazon’s $2.335 trillion.
No further details have been provided regarding the layoffs, nor has it been clarified which employees will be affected. Microsoft has been contacted for more context, but no immediate response has been received.