Microsoft and Fellow Tech Titans Extend Layoffs Amid Slowdown Signals

In 2025, tech corporations such as Google and Microsoft are reducing their workforces in an attempt to save expenses and boost team productivity.

With big companies like Google, Microsoft, and others continuing to reduce their workforces, layoffs in the IT sector are not expected to halt in 2025. Companies are still cutting employees in an effort to simplify operations, save money, and emphasize automation and artificial intelligence, even though these figures are far lower than the major layoffs that occurred between 2022 and 2023.

Layoffs.fyi, a website that tracks layoffs in the industry, reports that 93 organizations have let off nearly 23,500 IT workers so far this year, and the figure is still growing. Google and Microsoft are contemplating a new round of layoffs, according to the most recent job reduction rumors. According to reports, AI-led restructuring and performance-based terminations are part of the corporations' goals to increase the effectiveness of their personnel.

According to reports, Microsoft is preparing for yet another round of layoffs that may begin as early as May 2025. Talks are apparently in progress to boost the proportion of engineers to non-technical employees and decrease middle-management positions. According to inside sources, the business is looking at divisions with more managers than coders in an effort to increase productivity by reducing hierarchies.

Microsoft is also attempting to increase the engineer-to-manager ratio from the current 5.5:1 to 10:1 in its security branch, which is headed by Charlie Bell. Additionally, as part of the reorganization, workers who have persistently low-performance ratings (scoring "Impact 80" or lower) may also be let go.