Microsoft is gearing to cut jobs and is reportedly all set to focus on performance. Clearly, the company has decided to take underperformance seriously, as reported by Business Insider.
The company had cut about 10,000 jobs in 2023 and 4,000 in 2024. The gaming division which was underperforming took the maximum brunt in the previous rounds. This time there has been no official announcement regarding the number of jobs that will be cut.
In September, Microsoft had laid off more than 650 employees from its Xbox team as part of a restructuring exercise post acquisition of Activision Blizzard in a $68.7 billion deal. At the time, an official memo had conveyed to the employees that the layoffs would affect HR, marketing and other corporate and supporting functions. The studios and game-development teams would not be touched. The September cuts came after Microsoft had already cut about 1,900 earlier from both Activision Blizzard and Xbox in addition to closing four studios that were acquired in May.
It is pertinent to mention here that Microsoft has reportedly invested heavily on artificial intelligence.
The present headcount at Microsoft is about 2.28 lakhs.
It is reported that Microsoft has decided to make performance reviews stricter. That means employees not performing up to the mark may not be let off easily.
Letting go people on the basis of performance is not uncommon at Microsoft. Whenever it has done so in the past, the company has also filled the posts that were rendered vacant.
