Microsoft Has announced that it will be 3% of its global workforce, which will affect thousands of employees in all levels, teams and geographical areas, an amount of about 7,000 employees. The Redmond Giant cut, which had employed 228,000 people by last June, aims to reduce management layers and streamline operations.“We continue to implement the company for success in a dynamic market for success in a dynamic market,” a Microsoft spokesman told CNBC.It represents the greatest drawback of Microsoft since ending 10,000 roles in 2023. Unlike the small performance-based cuts of January, the company indicated that these layoffs are structural in nature.These cuts can particularly affect mid -management roles, as the company tries to create a more streamlined hierarchy by extending the “duration of control” of each manager. Microsoft, as reported by Business Insider, aims to prioritize engineering talent as it continues to invest heavily in artificial intelligence initiative.
Microsoft has introduced the new Rehier ban and performance management overhaul
The workforce is lacking amid significant changes in the performance management system of Microsoft. According to internal documents viewed by Business Insider, the company has implemented a two -year rehabilitation ban for forced employees due to performance issues.Microsoft has also introduced a “good attention” metric to track the desirable employee departure. This approach reflects Amazon’s controversial “uncontrolled attraction” system and indicates Microsoft’s intention with the intention of more aggressively managing the underperforming staff.Under the new system, employees facing demonstration issues should either enter a display improvement plan (PIP) with “clear expectations and reforms” or accept “global voluntary separation agreement” with 16 weeks of dissection salary. Those who choose the PIP path have only five days to make decisions and if they choose for the improvement plan, they will not be eligible for the breakdown package.
Tech sector watches industry-wide efficiency
Reorganization of Microsoft, flattery reflects a comprehensive trend in the technical industry towards organizational structures and high engineering efficiency. The company is allegedly focusing on reducing its “PM ratio” – the ratio of managers to engineers in teams – in teams.Similar strategies have been implemented in other technical giants including Amazon and Google, where the top layer of hierarchy was allowed to go. Meta is also expected to allow several thousand employees this year, as CEO Mark Zuckerberg pushed for “year of proficiency”.Reported in April follows the better-and-additional quarterly results of the Microsoft, when CEO Satya Nadella indicated that the company will change the sales execution after a minimal increase in non-AI Azure Cloud Revenue.
