Microsoft to start phasing out and limiting their PM roles permanently
Microsoft mulls layoffs in May, to focus on managers and non-coders: Report
Microsoft layoffs: This restructuring effort aims to streamline operations and improve the ratio of engineers to non-engineers within project teams.
Microsoft is reportedly planning another round of layoffs, expected to begin in May 2025. The focus will be on reducing middle management positions and non-technical roles. This restructuring effort aims to streamline operations and improve the ratio of engineers to non-engineers within project teams, according to sources cited by
Business Insider.
This strategic planning is similar to broader industry patterns followed by tech giants like Google and
Amazon, which have taken the same restructuring efforts to lessen the managerial levels and prioritize technical talent. For example,
Amazon has been working to increase its ”builder ratio,” highlighting a higher proportion of engineers to non-technical staff. In the same manner, in December,
Googleannounced a 10% reduction in vice president and manager roles as part of an efficiency drive
In
Microsoft, discussions are underway to lessen the ”PM ratio” (Product manager to engineer ratio) which indicates the number of product or program managers relative to engineers. Charlie Bell, Microsoft’s security Chief who had earlier held a crucial role at Amazon, is credited for introducing the ‘’builder ratio’’ concept. Under this, the aim was to adjust the team structure to a 10:1 ratio of engineers to managers, an increase from the current 5:5:1 in his division.
According to a report by
Business Insider, the exact number of expected job cuts continues to be unknown, but it signals that reductions could majorly affect certain teams. The layoffs may not just target managerial positions but may also impact employees with constantly low performance reviews. It is likely to affect those employees who are scoring an ”Impact 80” or lesser than it for the last two consecutive years. These internal evaluations will play a major role in influencing employee compensation and stock awards.
This expected restructuring follows a past layoff of approximately 2,000
underperforming employees earlier this year. Microsoft’s further job cuts reflect a strategic plan to reform its workforce composition and boost operational efficiency. The company has refused to comment on the speculations.
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