More Microsoft layoffs coming? Middle managers and low performers may face the axe, report says

IT giant Microsoft Corp. is mulling another round of layoffs next month, with company leaders discussing cuts to middle managers and exploring ways to increase the ratio of coders to non-coders on projects, according to Business Insider.

While the exact number of job cuts remains unclear, the report suggests it could impact a significant portion of a team.

Microsoft Team Ratio

At Microsoft, discussions are reportedly focused on reducing the “PM ratio” on some teams—referring to the ratio of product or program managers to engineers.

According to the media report, which cited a company official, the job cuts would require team managers to meet specific budget targets and maintain a defined team-based ratio.

Low Performers

“At least some Microsoft leaders are considering terminating those who received an “Impact 80” or lower score in performance reviews for two consecutive years,” the report said.

The IT company evaluates employees on a scale of 0 to 200—called the “ManageRewards slider”.

Based on ratings, it is decided how much an employee would get in stock awards and cash bonuses.

On the scale, 0, 60, and 80 are lower performers, 100 is the middle range, and 120, 140, and 200 are higher performers.

Earlier this year, Microsoft laid off around 2,000 employees it deemed low performers.

Microsoft dismisses two employees

Meanwhile, this week, Microsoft dismissed two employees who disrupted an event celebrating the company’s 50th anniversary.

Ibtihal Aboussad, who had urged the company to axe the Israeli government as a customer, interrupted a speech by Microsoft consumer artificial intelligence chief Mustafa Suleyman.

Later, Vaniya Agrawal disrupted a question-and-answer session featuring Microsoft Chief Executive Officer Satya Nadella and his two predecessors, Bill Gates and Steve Ballmer.

The event staff asked both employees, who worked as software engineers at the company, to leave the venue.

(With inputs from agencies)