Microsoft to Cut Jobs as Big Tech Layoffs Continue

Layoffs in the tech industry, a trend that has been going on for a few years, might continue into 2025 as companies continue to reassess their staffing needs and focus on cutting costs.

A new report from Business Insider says Microsoft plans to cut jobs in different departments, especially targeting employees who aren’t meeting performance expectations, including those in security roles.

A Microsoft spokesperson confirmed that layoffs are coming soon but didn’t say how many workers will be affected or when the cuts will happen.

“At Microsoft, we focus on high-performance talent,”  the spokesperson said. “We are always working on helping people learn and grow. When people are not performing, we take the appropriate action.” 

The spokesperson also disclosed that Microsoft usually hires again after making cuts.

In mid-2024, Microsoft had about 228,000 full-time employees. The tech industry has been cutting jobs since 2022, and it seems like this might keep happening.

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In 2024 alone, around 151,484 tech workers lost their jobs across 542 companies, according to TechCrunch and layoffs.fyi, a website that tracks layoffs.

The tech sector’s layoffs are happening for several reasons. During the pandemic, many companies grew quickly and hired more workers, often more than they needed. But as growth slowed down, companies realized they had too many employees and started cutting costs, especially in areas where workers weren’t performing well.

With a bigger focus on making a profit and running more efficiently, many tech companies are reducing staff to stay financially stable. The uncertain economic situation suggests that this trend could continue in the tech world in 2025.