Microsoft Layoffs: Next Wave of Job Cuts to Target Mid-level Managers, Non-Tech Roles

Microsoft is planning to lay off employees mainly from the middle managerial and non-technical roles. The tech giant is likely to carry out these layoffs in the month of May to streamline organisational structure and enhance the ratio of engineers within project teams, the Business Insider reported. 

This also comes as the tech giant is reportedly considering increasing the ‘span of control’ for managers as its strategy to optimise workforce composition and improve efficiency. 

The exact number of employees who will be affected is not known yet but those with consistently low performance reviews are likely to be targeted first mainly those who have scored an “Impact 80” or lower for two consecutive years.

“At least some Microsoft leaders are considering terminating those who received an “Impact 80” or lower score in performance reviews for two consecutive years,” the Business Insider report mentioned.

The tech giant initiated a performance-based job cut in February this year without any severance package. The tech firm, in a letter addressed to the employees concerned, mentioned that the job cut is based on performance evaulation. 

“The reason (s) for the termination of your employment including your job performance has not met minimum performance standards and expectations for your position,” said Microsoft in a letter, according to Business Insider. 

A similar strategy was used by Microsoft to lay off around 2,000 underperforming employees earlier this year.

Tech Layoff

The layoff by Microsoft is reflecting a broader trend witnessed in the tech industry. According to a report by RationalFX, nearly 80 tech companies are mainly based in the United States since the start of 2025. A similar trend was seen in 2024, where around 280,991 tech employees, lost their jobs. Amongst these job cuts, Meta has led the way with 3,600 employees followed by Microsoft and Amazon with 2,280 and 2,100 job cuts, respectively.