Microsoft Is About to Begin Job Cuts. Here’s Why.

The tech industry’s layoff trend over the last few years may continue into 2025.

According to a new report by Business Insider, Microsoft will be cutting positions across the company “soon” and will focus on underperforming employees in various roles, including security.

A Microsoft spokesperson confirmed to the outlet that cuts were imminent but didn’t provide details on how many employees would lose their jobs, or when.

Related: Microsoft CEO Satya Nadella Reportedly Calls 2 Different CEOs Every Day — and Has 2 Favorite Questions

“At Microsoft, we focus on high-performance talent,” the spokesperson told Business Insider. “We are always working on helping people learn and grow. When people are not performing, we take the appropriate action.”

The spokesperson also told the outlet that the company usually backfills cut positions.

In the summer of 2024, Microsoft had around 228,000 full-time employees.

Related: Microsoft CEO Satya Nadella Says the Company Needs a ‘Culture Change’ After Security Failures

The tech industry has been laying employees off in a big way since 2022.

In 2024, there were around 151,484 employees laid off from 542 tech companies, according to TechCrunch and layoffs.fyi, a website that tracks job layoffs.