Microsoft employs hundreds of thousands of people globally and has implemented multiple rounds of major layoffs over the years.

Microsoft plans to make a new round of layoffs across the company, impacting employees whose performance has been deemed to fall short of its standards.

Microsoft Corp. (Nasdaq: MSFT) is planning a round of performance-based layoffs, the company confirmed to the Business Journal Wednesday. A spokesperson for the Redmond-based tech giant declined to disclose how many people will be affected or to what extent the layoffs will impact its Puget Sound-region workforce.

Microsoft begins 2025 with layoffs targeting underperformers. Learn about its workforce adjustments, AI skilling programs, and focus on cloud and AI growth.

Microsoft is set to lay off more employees, targeting those deemed underperformers, including in its vital security division. The move aligns with broader industry trends focusing on efficiency and performance.

A spokesperson for the company confirmed plans to cut jobs, the Business Insider report said, but did not specify the scale of the cuts. The report also said that the company had likely backfilled the roles, presenting few changes to Microsoft’s overall headcount. The firm had roughly 228,000 employees as of June 2024.

Microsoft is cutting a small percentage of jobs across departments, based on performance, the company confirmed to CNBC on Wednesday.

Microsoft is reportedly planning to initiate performance-based job cuts across multiple departments. The news was first reported in Business Insider and later corroborated by CNBC. According to CNBC,

Redmond claims cuts are performance based Microsoft kicks off the new year with more job cuts, as fewer than 1 percent of employees reportedly face the axe.… As first reported by Business Insider, Microsoft is trimming its workforce again,