A Microsoft spokesperson said that the company will cut staff in many departments based on performance evaluation: "When people are not working, we will take appropriate action."
Microsoft also affirmed that the company will focus on talent with high work efficiency. We always strive to help people learn and develop. When people are not working, we will take appropriate action.
It is known that this salary cut affects less than 1% of Microsoft employees. Accordingly, Microsoft has a tougher stance than its competitors when it comes to ineffective human resources. In the past few months, the company's managers have also spent time evaluating their employees.
As of the end of June 2024, Microsoft has recruited 228,000 workers. Although the net income ratio is almost 38% highest since the early 2000s, the company's stock has not increased as strongly as other technology enterprises.
Compared to previous layoffs, the cut in early 2025 seems much "easterly". Previously, in early 2023, Microsoft laid off 10,000 people.
2025 is also starting to come as the relationship between Microsoft and OpenAI becomes more fragile. In the summer of 2024, the company also added OpenAI to its list of competitors. Mr. Satya Nadella - CEO of Microsoft used the phrase "nedated cooperation" when discussing the relationship with the developer of ChatGPT.
Meanwhile, Microsoft 365 Copilot assistant based on OpenAI technology is not yet popular in the business world. However, the Windows maker still has other growth opportunities.
