Microsoft confirms performance-based job cuts across departments

Posted: Jan 09, 2025

  • Microsoft is cutting a small percentage of jobs based on performance
  • Less than 1% of employees will be affected
  • Previous job cuts were larger, including 10,000 in early 2023 and 1,900 in January 2024
  • Microsoft has a tenuous relationship with OpenAI
  • Microsoft's stock underperformed peers in 2024
  • Revenue growth from Microsoft's Azure cloud is expected to speed up due to AI infrastructure capacity
  • Microsoft is cutting jobs across departments based on performance
  • Less than 1% of Microsoft's 228,000 employees will be affected
  • This is a small percentage compared to previous job cuts
  • Microsoft has underperformed in the stock market compared to its peers
  • The company plans to spend $80 billion to build out AI this year
  • Microsoft's relationship with AI startup OpenAI has become tense, with the company now considered a competitor rather than a partner


What do people on Reddit think?

🚨 Reddit sentiment: mixed/negative - The sentiment is mixed with comments noting the positive impact on stock prices, but predominantly negative sentiment about the overall approach and repercussions on workplace culture, employee well-being, and long-term company performance. Summarized comments: - Performance-based layoffs at Microsoft are compared to Hunger Games, fostering a toxic work culture - Companies adopt a bell curve system for layoffs, pressuring workers against each other - Job cuts are seen as positive for stock prices - Criticism of Satya Nadella comparing him to Steve Ballmer in negative light - Microsoft accused of favoring H1B visas over local workers, mainly to reduce labor costs - Layoffs are viewed as negative for tech industry despite being positive for shareholders - Short-term focus by management might harm long-term quality and innovation Stock tickers discussed: $MSFT



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