Another Microsoft layoff round coming. This time, it's for middle managers: Report
This comes as Microsoft is looking to reduce its "PM ratio" which is the ratio of product managers or program managers to engineers.
Microsoft is now considering yet another layoff round, focusing on middle managers this time as the tech giant looks to increase the ratio of coders versus non-coders on projects.
The job cuts could even come as soon as May, according to a Business Insider report.
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HT.com cannot independently verify the information contained in the report.
Though it is unclear as to how many jobs will go, it can be a significant portion of the team, according to the report.
'PM ratio' could be cut
The company is looking to reduce its "PM ratio" which is the ratio of product managers or programme managers to engineers.
For instance, Bell's security organization at the moment is around 5.5 engineers to one PM, and the goal is to reach 10:1, according to the report.
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This concept was introduced by Microsoft's security boss Charlie Bell who brought it from Amazon, where it's called the "Builder Ratio," tracking the ratio of software engineers to "non-builders," like program managers and project managers, according to the report.
The tech industry at large, which includes Amazon is also doing something similar. Even Google CEO Sundar Pichai told staff last December that the company cut vice president and manager roles by 10% as part of an efficiency drive.
When it comes to Microsoft itself, the company had previously laid off 2,000 employees it deemed low-performers.
The upcoming layoffs could also include lower performers, according to the report which added that some Microsoft leaders are considering to terminate those who received an "Impact 80" or lower score in performance reviews for two consecutive years.
Microsoft's employee evaluation is done on a scale of 0 to 200 called the "ManageRewards slider." This influences how much an employee receives in stock awards and cash bonuses.
