Microsoft on Tuesday, May 13, announced sweeping global layoffs affecting nearly 6,000 employees—about 3% of its total workforce—despite recently reporting strong sales and profits. Instead of celebrating its financial wins, the tech giant is opting for one of its largest rounds of job cuts since early 2023.
Back in January 2023, the company laid off around 10,000 employees, amounting to 5% of its workforce at the time. The latest round follows a performance-based layoff earlier this year, continuing the company’s focus on internal restructuring. As of June 2024, Microsoft reported a global workforce of 228,000 full-time employees, with 55%—approximately 126,000—based in the United States. The new layoffs will affect employees across various levels and departments worldwide, but the company appears to be zeroing in on management roles.
“Kicking off a new era of ruthless performance management”
Meanwhile, an American influencer has exposed the tech giant over their ruthless layoffs. The post shared on X details the sweeping policy changes that accompanied the layoffs—policies that some say could set the tone for workplace dynamics across the sector in 2025. In the post, the influencer highlights a “brutal new policy overhaul,” including a two-year rehire ban for employees terminated due to performance issues, and the introduction of a controversial “good attrition” metric—an internal measurement reportedly used to flag whether the company is glad to see a certain employee leave.
Perhaps most contentious is the limited choice now offered to affected employees, a five-day window to either accept 16 weeks of severance or enter a performance improvement plan (PIP). Failure to meet the expectations of the PIP would result in termination without any severance payout. The influencer draws a parallel to Amazon’s “unregretted attrition” model, suggesting that Microsoft is embracing similarly aggressive strategies to manage underperformance and streamline operations. “Welcome to 2025,” the post ends claiming how tech giants handle talent, accountability, and exit paths.
Netizens swiftly reacted to the post. A user said, “sounds like an awful culture.” Another noted, “This should be a wake up call to Americans who make their job their identity. The company you work for doesn’t care about you as a person and you’re easily replaced.” Meanwhile, a user noted, “I understand that they trying to become leaner but there’s no way this is good karma. Some people’s performance drops due to unforeseen circumstances like family issues. Satya becoming Bezos makes no sense.” “Talked about this here, it’s ridiculous but it’s how the world works + this is going to happen more and more. We have to better prepare grads for the real world,” added another.