Microsoft is intensifying efforts to boost employee productivity, following in the footsteps of Amazon, Meta, Google, and more recently Dell. The tech giant is restructuring its workforce through layoffs, stricter performance expectations, and a reduction in management layers—part of a broader industry trend to "do more with less" amid economic pressures and AI-driven priorities.
According to Business Insider, Microsoft is experimenting with Amazon-style “unregretted attrition”, where each business unit identifies underperformers for regular dismissal. The company has also reportedly adopted Meta’s rehiring blacklist, applying a two-year ban on rehiring employees let go for underperformance.
At the same time, Microsoft has revamped its bonus system to reward employees who deliver consistent high performance over three to four years, rather than just annually. This shift aims to align long-term individual contributions with Microsoft’s strategic goals—especially in AI.
The company laid off 2,000 underperforming employees earlier this year and is expected to announce another round of cuts soon. Like Dell and others, Microsoft is also flattening management, reducing the ratio of non-technical roles in favor of engineers and developers directly driving tech innovation.
These changes reflect the end of the “startup era” hiring model, as Big Tech companies adapt to post-pandemic realities, higher interest rates, and shareholder demands—while racing to lead the future of AI.
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