Microsoft is implementing performance-based job cuts affecting less than 1% of its workforce, which numbers 228,000. The company emphasizes a focus on high-performance talent. Recent layoffs come after a previous reduction of 10,000 employees in early 2023 and 1,900 in January 2024. Despite a strong net income margin, Microsoft’s stock has underperformed compared to peers. The company is also navigating a complex relationship with AI startup OpenAI, which it heavily invested in.