Microsoft is reportedly planning another wave of layoffs as early as May, with internal discussions underway about restructuring roles to enhance efficiency. According to Business Insider, the tech giant is focusing on reducing the number of middle managers, particularly in teams where product or program managers outnumber software engineers. The goal is to streamline operations by increasing the ratio of technical staff to non-technical staff, thereby prioritizing direct contributors in product development.
Executives are evaluating the possibility of expanding the “span of control,” where a single manager would oversee more team members, potentially eliminating multiple layers of supervision. This would allow Microsoft to redirect resources toward engineering hires.
A notable push for this change is happening in the company’s security division, led by Charlie Bell, who previously worked at Amazon. He is reportedly aiming for a 10:1 ratio of engineers to managers, up from the current 5.5:1, aligning with Amazon’s “builder ratio” approach.
In addition to role restructuring, Microsoft is also reviewing employee performance. Those with consistently low ratings—especially those scoring below 80 on the company’s “ManageRewards” performance scale—could be at risk. Employees in this category typically receive reduced bonuses and stock awards, making them more susceptible during periods of downsizing.
