Microsoft is cutting a small percentage of jobs across departments, based on performance, the company confirmed to CNBC on Wednesday. "At Mi

Microsoft confirms performance-based job cuts across departments

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2025-01-09 03:30:08

Microsoft is cutting a small percentage of jobs across departments, based on performance, the company confirmed to CNBC on Wednesday.

"At Microsoft we focus on high-performance talent," a Microsoft spokesperson said in an email to CNBC on Wednesday. "We are always working on helping people learn and grow. When people are not performing, we take the appropriate action."

The job cuts will affect less than 1% of employees, said a person familiar with the matter who asked not to be named in order to discuss private information.

Microsoft had 228,000 employees at the end of June. While the company's net income margin of nearly 38% is close to its highest since the early 2000s, Microsoft's stock underperformed its peers last year, rising 12% while the Nasdaq gained 29%.

In early 2023, the company laid off 10,000 employees and consolidated leases. In January 2024, three months after completing the $75.4 billion Activision Blizzard acquisition, Microsoft's gaming unit shed 1,900 jobs to reduce overlap.