Microsoft Eyes Middle Management Layoffs Now, To Push For More Coders Over Managers: Report

Microsoft is reportedly weighing up another round of job cuts, this time targeting middle management, as part of an effort to boost the proportion of software developers compared to non-technical roles within projects.

According to a Business Insider report, the layoffs could begin as early as May. However, One.in has not independently verified the contents of the report.

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While the exact number of jobs at risk remains unclear, the cuts are expected to affect a significant part of the team, the report added.

Reduction in 'PM ratio'

The tech giant is said to be aiming to reduce its "PM ratio" - the number of product or programme managers per engineer.

For example, Microsoft's security division currently has around 5.5 engineers for every one product manager, but the target is to reach a 10:1 ratio, according to the report.

This concept was reportedly introduced by Microsoft's security head, Charlie Bell, who previously worked at Amazon. There, the metric is known as the "Builder Ratio," which tracks the balance between software engineers and so-called "non-builders" such as programme and project managers.

A similar trend is being seen across the wider tech industry. Google CEO Sundar Pichai said in December that the company had reduced vice president and manager roles by 10% as part of efforts to improve efficiency.

Microsoft previously laid off 2,000 employees who were considered low performers. The upcoming round of layoffs may also include underperformers, the report added.

Some senior leaders at Microsoft are said to be considering letting go of staff who received an "Impact 80" or lower rating in their performance reviews for two years in a row.

Microsoft assesses employees using a "ManageRewards slider," which ranges from 0 to 200 and helps determine stock awards and cash bonuses.