Microsoft Layoffs 2025: 'When People Are Not Performing...' - Tech Giant Confirms Job Cuts Across Divisions

Microsoft is planning job cuts targeting underperforming employees. The reductions are happening across the company, including in its important security division.

Microsoft Job Cuts: Why?

Performance-based cuts are often backfilled by Microsoft, so its total headcount may not change much.

Microsoft is planning job cuts soon, and the company is taking a harder look at underperforming employees as part of the reductions, according to two people familiar with the plans.

A Microsoft spokesperson confirmed cuts but declined to share details on the number of employees being let go.

"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."

When people leave for performance reasons, Microsoft often backfills the roles, so there may be little change to the company's overall head count, the spokesperson added. At the end of June, Microsoft had roughly 228,000 full-time employees.

Microsoft is taking a stronger stance on performance management like its competitors, the people familiar with the plans said, and managers at the company have spent the past few months evaluating employees all the way up to level 80, one of its highest levels. The people asked not to be identified discussing sensitive matters.

The cuts are happening across the company, including in its important security division, the people said.

Microsoft Launches AI Programs

Amidst restructuring, Microsoft is also making significant investments in agriculture.

In a post on X, Microsoft CEO Satya Nadella wrote, "Discover how ADT Baramati's "Farm of the Future" uses Microsoft Azure and http://Agripilot.ai to equip farmers with AI tools, tackling challenges like water scarcity and soil degradation while boosting yields and fostering sustainability in Indian agriculture."

They also announced a $3 Bn investment in AI infrastructure and skilling in India.