Microsoft, Amazon Rely on Performance Reviews for Layoffs

Microsoft and Amazon are leveraging performance reviews to guide layoffs, signaling a shift in workforce management. Missed key performance indicators (KPIs), disengagement, and lack of self-advocacy put employees at risk, highlighting the need for consistent performance and visibility to safeguard roles during economic uncertainty.

Microsoft, valued at US$3.1 trillion, is preparing for another wave of layoffs, targeting underperforming employees based on key metrics. In the first week of 2025, the company confirmed further job cuts, impacting less than 1% of its 228,000 strong workforce. This follows a previous reduction of 2,500 employees in June 2024, and the company's earlier move in January 2023, when it laid off 10,000 workers—about 5% of its staff, as reported by Techradar.  

Similarly, Amazon laid off 27,000 workers between 2022 and 2023 after placing many on performance improvement plans (PIPs), reports Fortune. These actions reflect how tech giants are streamlining their workforces amid economic pressures such as rising operational costs, fluctuating market demand, and growing investment in AI, emphasizing the importance of measurable performance in retaining jobs.

Keith Spencer, Career Expert, ResumeNow, warns of behaviours that can jeopardize an employee’s position. These include missed deadlines, subpar work, and poor communication. He also emphasized the importance of self-advocacy in the workplace. “Failing to advocate for yourself and share your successes can also cause your contributions to go unnoticed, making it easier for management to overlook your value,” Spencer said.

Gabrielle Davis, Career Expert, Indeed, explained that resistance to change, refusal to adopt new tools or processes, and ignoring feedback can also place an employee at risk. Indeed explains that employers highly value adaptability in the workplace. Employees who manage change effectively maintain productivity and ensure smooth transitions. Their ability to handle challenges with ease minimizes disruption and saves time. Adaptable individuals bring resourcefulness, leadership, determination, and analytical skills, making them valuable contributors to organizational success. Open communication with management and active participation in workplace initiatives are also crucial for career stability.

In 2024 alone, the tech industry saw over 89,000 jobs eliminated across 302 companies, as reported by MBN. This wave of layoffs affected both major players like Tesla, Amazon, Google, and Microsoft, as well as emerging startups.