How next round of job cuts at Microsoft’s may have an 'Amazon and Google angle'

Microsoft is reportedly considering another round of job cuts, potentially as soon as May, as the tech giant explores further streamlining of its team structures. The potential reductions are said to target middle management positions while aiming to increase the ratio of engineers to non-technical roles within project teams. This approach echoes similar restructuring efforts announced by Amazon CEO Andy Jassy, who has also emphasised a leaner organisational structure.
Citing multiple sources familiar with the matter, Business Insider reports that discussions are underway to increase the “span of control” for remaining managers, meaning each manager would oversee a larger number of employees.
While the exact number of potential job losses remains unclear, the report said that as a “significant portion” of their team.

This potential move aligns with a broader trend in the tech industry, where companies like Amazon and Google have also been actively working to optimise their organizational structures by increasing the ratio of individual contributors to managers. Google CEO Sundar Pichai, in December, announced a 10% reduction in vice president and manager roles as part of an efficiency drive.
The report notes that Microsoft has its focus on decreasing the "PM ratio" – the ratio of product managers or program managers to engineers – on various teams. This concept, known as the "Builder Ratio" at Amazon, where Microsoft's security chief Charlie Bell previously held a prominent role, aims to track the balance between software engineers and "non-builders."
Microsoft is also reported to be considering setting more aggressive targets for this ratio within some organisations. For instance, Bell’s security division is reportedly aiming to increase its engineer-to-PM ratio from the current 5.5:1 to 10:1.
This potential restructuring will follow a round of approximately 2,000 job cuts earlier this year, which Microsoft attributed to the removal of low-performing employees. The upcoming potential cuts in May could also include individuals identified as lower performers based on the company's "ManageRewards slider" performance review system.