Tech companies have been laying off since 2025 for various reasons. If reports are to believed Microsoft is reportedly preparing for a fresh wave of layoffs in May 2025. The company terming it as reshaping has planned job cuts. The company has said that the move will impact the middle management roles. According to reports the exercise are part of a broader strategic move to reduce layers of management and increase the ratio of technical staff to non-technical employees. According to reports the layoffs could impact a significant number of roles although the exact figure has yet to be confirmed. The company is said to be aiming for a more streamlined hierarchy by increasing the span of control for managers — in effect having each manager oversee more employees. This shift is designed to cut bureaucratic overhead and prioritise hands-on technical contributions within project teams. The restructuring will primarily target middle managers and programme or product management roles — positions that are considered non-essential in Microsoft’s current push for operational efficiency. Internally the company is reportedly focusing on reducing what’s referred to as the “PM ratio” — the proportion of managers to engineers — across teams. This reflects a broader industry trend among tech giants towards flatter more agile organisations. The move follows around 2000 job cuts earlier this year which the company attributed to the removal of underperforming employees. The upcoming round of layoffs could again target those lower on Microsofts “ManageRewards slider” the internal performance evaluation system. While Microsoft has yet to issue an official statement the anticipated restructuring highlights a growing trend among tech companies to consolidate roles cut managerial layers and prioritise engineering capabilities as AI continues to reshape the digital landscape.