San Francisco, May 7: Microsoft has announced a change in its recruiting policy, saying that laid-off employees will not be hired. The new Microsoft policy states that employees, who were removed from the organisation due to their low-performance-based layoffs, will be banned from re-joining the company for two years. This year, the tech giant announced performance-based terminations in 2025, affecting several employees.

The next round of Microsoft layoffs will reportedly be announced in May 2025. Windows and Copilot developers will cut middle management and non-technical roles. The company may hire more engineers than non-technical staff, likely to focus on emerging technologies like artificial intelligence (AI) and machine learning (ML). General Motors Layoffs: US-Based Automobile Giant To Cut Hundreds of Jobs in Israel Following Cruise Subsidiary Shutdown as Part of Global Restructuring Efforts.

According to reports, Microsoft's decision not to re-hire the laid-off staff based on their performance is part of the company's plan to execute a broader shift. The two-year ban is part of the company's strategy to approach performance management and employee retention, said reports. The Microsoft layoffs and streamlining of operations based on lower employee performance reportedly indicated that the tech industry was moving more aggressively.

Microsoft will implement this new re-hiring strategy with two-year ban in order to remove the low performing employees faster. Satya Nadella-led tech giant is taking these strict steps ahead of its upcoming Microsoft layoffs in May 2025 which may affect the middle management staff. The company already laid off 2,000 employees who did not meet the performance criteria earlier this year. After internal reviews, the laid-off Microsoft employees were also not provided severance pay. Besides Microsoft, Google, Meta and various other companies have laid off employees in 2025. In April 2025, Intel announced it had laid off 22,000 employees, cutting 20% of its workforce. PwC Layoffs: UK-Based Fintech Consulting Firm Laying Off More 1,500 Employees, 2% of Workforce in US Amid Facing Global Challenges.

Tech layoffs in 2025 affected 52,340 employees from 123 companies, which is concerning. In the following month, more job cuts are expected in the technology sector amid the rise of automation, artificial intelligence, and competition. Various companies also lay off people due to other reasons, like restructuring, cost-cutting and shutting down operations.

(The above story first appeared on LatestLY on May 07, 2025 05:53 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).