Microsoft is preparing for another round of layoffs.

After laying off 2,000 underperforming employees, Microsoft is preparing for a new round of layoffs in May, cutting even more middle managers, not programmers.

Insider sources reveal that leaders in several departments at Microsoft are discussing cutting middle management and increasing the developer-to-employee ratio on projects. Some teams also want to increase the control ratio, meaning the number of employees per manager.

The scale of the job cuts is unclear, but one source indicated a significant number. Microsoft declined to comment on the report.

Insider reports that Microsoft will begin laying off employees next May.

The reduction of middle management positions is being supported by many tech corporations. In December 2024, Google CEO Sundar Pichai said that management and vice president positions would be cut by 10% to boost efficiency.

At Microsoft, discussions have focused on reducing the PM (product manager/program manager) ratio in several teams. This is essentially the PM/engineer ratio.

Charlie Bell, Microsoft's head of security, brought this model from Amazon to Microsoft and named it the "builder ratio." They track the ratio of programmers to positions like PM. His security team currently has a ratio of 5.5 to 1, and he's aiming to increase it to 10 to 1, according to sources.

Earlier this year, 2,000 Microsoft employees who received poor performance reviews were laid off. The layoffs next month will also include underperforming employees. One source said that at least some leaders are considering terminating the contracts of those who received scores of 80 or below in performance reviews for two consecutive years.

Microsoft evaluates employees on a scale from 0 to 200. The score affects stock and cash rewards. The average score is 100, while 0, 60, and 80 are low; 120, 140, and 200 are high. Those with a score of 80 only receive 60% of the maximum stock reward and 80% of the maximum cash bonus.

Source: https://baoquocte.vn/microsoft-chuan-bi-co-dot-sa-thai-nhan-vien-moi-311269.html