In early January 2025, Microsoft announced another round of layoffs as part of its ongoing restructuring efforts. This decision follows significant workforce reductions in previous years, with the company cutting 10,000 jobs in January 2023 and at least 2,500 in June 2024.
The latest layoffs impact less than 1% of Microsoft’s workforce, which totaled 228,000 employees six months ago. Although specific numbers of affected employees have not been disclosed, the company clarified via email to CNBC that this move is centered on employee performance. Microsoft stated, “We are always focused on developing high-performing talent and supporting employees to learn and grow,” emphasizing that action would be taken when individuals do not meet performance standards. This suggests that the layoffs are more about routine restructuring rather than indicative of financial challenges.
Despite recording a 12% increase in revenue in the latest quarter, Microsoft shares have not met investor expectations. Over the past year, Microsoft’s stock rose by 12.98%, significantly trailing behind competitors like Google and Amazon, which saw increases of 37.06% and 46.75%, respectively. Nonetheless, Microsoft maintains a strong market position, with a market capitalization of $3.156 trillion, well above Google’s $2.382 trillion and Amazon’s $2.335 trillion.
At this time, specific details regarding the departments or positions impacted by the layoffs have not been revealed. With ongoing job cuts across the technology industry, experts anticipate continued fluctuations in the job market soon.
