The Redmond-based Tech Giant Microsoft has announced to cut short employees citing performance issues. The company will layoffs across various departments, including its security division. To recall, the company has also done layoffs in the past; Recently in September 2024 affecting corporate and support roles. As per reports, the company is planning to enhance its strategy for performance management and hence cutting jobs might help the tech giant to focus mainly on employees who are working extravagantly hard.
A spokesperson told CNBC, “At Microsoft, we focus on high-performance talent. We are always working on helping people learn and grow. When people are not performing, we take appropriate action.”
However, the company is fairly known for layoffs in the past wherein the tech giant closed several gaming studios in the Microsoft Xbox division. Microsoft laid off again in June last year with over 1000 employees and one more time happened in June 2024. The company is taking a stronger stance against employees who are underperforming employees as part of reductions.
>Indian CEO
>Microsoft receives Billions in subsidies from the US govt.
>Invests $3B in India’s economy
>Microsoft heavily utilizes the H-1B visa and claims there is a “talent shortage” >continues to layoff tens of thousands of Americans annually
>announces Microsoft will… pic.twitter.com/8gBUBjYQGv
— Unfiltered Truth (@UnfiltdTruth) January 8, 2025
Laying off is often one of the first processes in maintaining cost-cutting to cover increased expenses. Another reason for layoffs is the restructuring program under which the tech giants mainly restructured their workforce to align resources. Microsoft has laid off employees in multiple rounds since 2014 and this has affected the career growth of many.
We can’t deny that AI has also played a greater role in layoffs with companies looking to hire people who are trained in AI skills or their work being replaced with AI. To recall, in Google’s Q3 earnings call, the company’s CEO Sunder Pichai mentioned how AI is generating 25% of the codes at the company and after the code is generated it is then checked by employees.
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