Microsoft cuts more jobs, settles lawsuit
The company acknowledged 'organisational and workforce adjustments' as a standard practice
Microsoft has reportedly undergone another round of job cuts this week, affecting employees across various teams and locations.
As reported by GeekWire, posts on LinkedIn from affected individuals suggest that the cuts primarily affected product and programme management roles. Microsoft, however, has remained tight-lipped regarding the exact number of positions eliminated and the specific departments targeted.
While details remain scant, Microsoft acknowledged these "organisational and workforce adjustments," saying they are a standard practice for managing the business.
"We will continue to prioritise and invest in strategic growth areas for our future and in support of our customers and partners," a Microsoft spokesperson told GeekWire.
The news comes a month after reports surfaced about Microsoft planning to trim its Azure cloud and HoloLens divisions.
The timing aligns with the company's historical practice of restructuring during the July transition into a new fiscal year.
Microsoft's workforce adjustments follow significant headcount reductions over the past two years. Last year, the company laid off roughly 10,000 employees, followed by smaller cuts later that year.
This year began with layoffs impacting 1,900 Activision and Xbox employees, attributed to the Activision Blizzard acquisition.
The company's workforce, which peaked during the pandemic, has plateaued in recent years. GeekWire estimates a headcount of roughly 227,000 at the end of 2023, down from 232,000 the year before.
Microsoft settles California pay discrimination lawsuit
The latest round of layoffs at Microsoft comes amid news of the company agreeing to pay $14.4 million to settle a lawsuit filed by the California Civil Rights Department (CRD).
The tech giant was accused of discriminating against employees who took protected leave, such as parental, family care, disability and pregnancy leave.
The CRD launched an investigation in 2020, suspecting Microsoft violated California's Fair Employment and Housing Act and the Americans with Disabilities Act.
The lawsuit claimed that employees who took protected leave were disadvantaged when it came to bonuses and performance reviews, hindering their chances of promotions, merit increases and stock awards.
CRD further alleged that Microsoft failed to adequately prevent this discrimination, affecting the careers of people with disabilities, women and other employees who took leave. This ultimately caused them to be "left behind" in career advancement.
The settlement will provide direct compensation to the California workers affected from May 2017 until the court's final approval. Additionally, Microsoft has agreed to several measures to ensure fair treatment for employees taking leave.
The company will retain an independent consultant to assess their policies and practices and recommend changes. This includes ensuring managers don't consider protected leave when making decisions about rewards and promotions.
The independent consultant will also create annual reports verifying Microsoft's adherence to the settlement's terms.
Managers and HR personnel will undergo specific training on preventing discrimination related to protected leave.
The company must also establish a clear and accessible process for employees to report concerns that taking leave negatively impacted their standing within the company.
The settlement comes amidst a series of large settlements reached by the CRD in recent years, primarily related to gender discrimination. These include a $100 million deal with Riot Games in 2021, a $54 million settlement with Activision Blizzard in 2023, and a $15 million settlement with Snap last month.