Microsoft Plans Layoffs Targeting Middle Managers Amid Restructuring

Microsoft is reportedly planning another round of layoffs, potentially targeting middle management and aiming to increase the ratio of programmers to non-programmers on projects. The job cuts could begin as soon as May and follow earlier layoffs of approximately 2,000 employees this year, part of a broader trend among tech companies like Amazon to streamline operations by reducing corporate bureaucracy. Sources indicate that Microsoft leaders are discussing how to improve team efficiency by decreasing the number of middle managers and increasing the 'span of control' for remaining managers. These layoffs come amidst a challenging period for the company, including internal protests related to an AI contract with the Israeli military and ongoing workforce reductions linked to the costly Activision Blizzard acquisition. As Microsoft approaches its 50th anniversary, the layoffs reflect a broader tech industry trend, with over 24,000 job losses reported in 2025 alone. The exact number of potential job cuts remains uncertain, but insiders describe it as a significant portion of affected teams.