According to sources keeping a close eye on the developments, Business Insider has revealed that Microsoft is considering laying off another group of employees as early as May in an effort to further streamline its organisational structure. In an attempt to increase the proportion of engineers in project teams, these reductions are expected to mostly impact middle management and non-technical positions.
Companies like Amazon and Google, have also made similar restructuring efforts to prioritise technical expertise over administrative responsibilities, showing that a wider industry trend has been reflected in this move.
Andy Jassy, the CEO of Amazon, has advocated for a smaller organisation, which is in keeping with the tech giant's plan to revamp its organizational structure.
According to the report, Microsoft is exploring ways to increase the 'span of control' for managers, meaning each manager would oversee a larger number of employees. Although the precise number of jobs at stake is unknown, some teams may be greatly impacted by the layoffs.
As part of its recent reorganisation, Google reduced the number of vice president and manager positions by 10% in an effort to increase productivity.
Microsoft is focusing on lowering the "PM ratio" — the amount of product or programme managers in comparison to engineers in teams — much to Amazon's Builder Ratio, which measures the percentage of engineers to non-builders.
According to reports, Charlie Bell, the security chief at Microsoft and a former high-ranking official at Amazon, is pursuing similar objectives within the company.
Microsoft may focus layoffs on employees with consistently low performance ratings, reports suggest.
An employee may be impacted if they have received a score of "Impact 80" or below for two years in a row.
This comes after almost 2,000 unproductive workers were laid off earlier this year. These moves are part of Microsoft's broader plan to increase productivity and optimize the makeup of its staff.
The reorganisation efforts of Microsoft reflect the tech-industry's move to prioritize technical expertise above management tiers. While there are speculations that the company is focusing on raising the proportion of engineers, it has not responded to these rumors. The strategy reflects an industry trend where engineers' contributions are increasingly valued to drive innovation.
