New Delhi, April 10, 2025 — Microsoft is reportedly gearing up for a new wave of layoffs in May 2025 as part of an internal restructuring strategy aimed at streamlining operations and realigning focus towards core technical roles. The move is expected to primarily affect middle management and non-engineering positions, including roles in product and program management.
Although the company has not yet issued an official statement, sources close to the matter indicate that the upcoming job cuts are intended to flatten Microsoft’s organizational structure. By increasing the “span of control” — allowing each manager to oversee a larger number of employees — Microsoft hopes to eliminate unnecessary layers of management and enhance overall efficiency.
This restructuring follows an earlier round of layoffs in 2025, which reportedly affected around 2,000 employees. At the time, the company attributed those cuts to the removal of underperforming staff based on its internal performance metric, the “ManageRewards slider.”
The anticipated job reductions align with a wider trend in the tech industry, where companies are consolidating roles and shifting focus to engineering and AI-driven innovation. Microsoft, like many of its peers, is aiming for a leaner, more agile workforce that emphasizes technical contribution over bureaucratic overhead.
As AI continues to transform the tech landscape, Microsoft’s latest restructuring marks another significant move towards a future where automation, innovation, and streamlined leadership take center stage.
