Microsoft staff face second round of layoffs as firm continues cost-cutting measures

Microsoft has revealed another round of layoffs in addition to the performance-based cuts confirmed last week, according to reports from Business Insider.

The layoffs will hit a range of teams across the organization, including security, sales, experiences and devices, and gaming, according to two people familiar with the matter.

One source claimed employees started to receive notifications about layoffs in the firm’s security division on Tuesday.

Microsoft confirmed the cuts to Business Insider, not specifying a figure but calling them small in size. The firm also confirmed that these cuts would be in addition to the layoffs announced last week.

ITPro approached Microsoft for comment but did not receive a response before publication.

The firm is also pausing hiring in its consultancy unit in an effort to cut costs, according to an internal memo seen by CNBC.

This division will hold off on hiring new employees and back-filling roles, consulting executive Derek Danois wrote in the memo. He added that cost management is of utmost importance.

Employees were instructed not to expense travel for internal meetings and opt for remote sessions, while executives will need to authorize trips to customer sites to ensure money is being spent correctly.

Microsoft continues layoff spree

Last week's layoffs announcement revealed that Microsoft plans to slash 1% of its workforce, with performance-related metrics as the motivating factor behind the cuts.

The tech giant aims to take a stronger stance on performance management, sources said at the time, and company managers had reportedly spent the last few months evaluating staff.

These cuts also reportedly included layoffs across Microsoft’s security division.

Last year, Microsoft announced cuts to several cloud departments including Azure for Operators and Mission Engineering, with one source estimating the extent of the layoffs could be as high as 1,500 roles.