Microsoft is reportedly considering cutting jobs as early as May, amid plans to improve productivity metrics such as “span of control” and “PM ratio.” The company is discussing increasing the number of engineers per manager, with some teams aiming for a 10-to-1 ratio. This move aims to reduce costs and boost efficiency. Earlier this year, Microsoft cut around 2,000 employees deemed low performers.
The job cuts are part of an effort to optimize middle management and improve the balance between coders and non-coders on projects. Some leaders want to increase the “span of control,” or the number of employees reporting to each manager. This concept was introduced by Charlie Bell, Microsoft’s security boss, who brought it from Amazon.
The potential cuts could impact lower performers, including those who received low scores in performance reviews for two consecutive years. Microsoft evaluates employees on a scale called ManageRewards, which influences stock awards and bonuses. The company is considering terminating those with “Impact 80” or lower scores.
Source: https://www.businessinsider.com/microsoft-mulls-more-job-cuts-managers-non-coders-2025-4