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Microsoft has announced that it will be reducing its workforce by a small percentage, affecting less than 1% of its employees across various departments. The company confirmed these performance-based job cuts in an email to CNBC, emphasizing its commitment to maintaining high-performance standards among its workforce.
A Microsoft spokesperson stated, “When people are not performing, we take the appropriate action.” This decision underscores the company’s focus on high-performance talent, as reiterated by the spokesperson. The cuts are not connected to Microsoft’s recent acquisition of Activision Blizzard but are based solely on individual performance evaluations.
The layoffs come on the heels of significant job reductions within Microsoft’s gaming unit, which saw 1,900 positions cut in January 2024 to streamline operations and reduce overlap. Earlier in 2023, the company laid off 10,000 employees and consolidated its real estate leases as part of a broader restructuring effort.
As of the end of June, Microsoft employed approximately 228,000 individuals. Despite the ongoing job cuts, the tech giant continues to project growth opportunities. Analysts at UBS have pointed out that the rollout of Microsoft’s Copilot assistant, which leverages OpenAI technology, has been slow and underwhelming, potentially impacting the company’s productivity initiatives.

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