Microsoft Layoffs Expected in May 2025: What It Means for Enterprise Support.

Microsoft is preparing for another round of job cuts, likely to hit in May 2025. According to a Business Insider report citing multiple insiders, these layoffs are expected to target middle managers and lower-performing employees across various teams.

If you’re relying on Microsoft for support, this matters. Fluctuations in staffing—especially in the tiers that impact issue resolution, escalation, and product roadmaps—can lead to inconsistency in service. For enterprises running mission-critical workloads, the stakes are high.

As Microsoft’s internal structure shifts again, we believe it’s essential to understand what’s happening, how it could affect your support experience, and why a stable third-party alternative like US Cloud is a smart choice right now.

Support quality comparison before and after Microsoft restructuring.

The upcoming round of Microsoft layoffs involves a few major employee roles, namely managers and coders—and not just the low performers. See below for a breakdown of what insiders say about what to expect from the layoffs.

More Cuts, Fewer Managers

The layoffs planned for May are part of a broader push inside Microsoft to flatten organizational structures. The company wants to increase its “span of control”—in other words, increase the number of direct reports per manager and reduce layers of management.

This follows a tech industry trend; Amazon and Google have both cut back on middle management to increase operational efficiency and put more focus on individual contributors—particularly engineers.

Coders vs. Non-Coders: The Builder Ratio

One of the driving metrics behind these changes is the “builder ratio,” a term imported from Amazon by Charlie Bell, who now leads Microsoft’s security organization. The builder ratio concept is simple: the more engineers (builders) per non-engineer (PMs, project managers, etc.), the leaner and more agile the team.

Currently, some teams at Microsoft are sitting at about 5.5 engineers to every PM. The target is 10:1. That’s a significant shift and one that will involve cutting roles that don’t contribute code.

Microsoft’s “builder ratio” push prioritizes engineers over non-coders to streamline teams.

Performance-Based Cuts Are Back for Microsoft Layoffs

The May layoffs may also include employees with consecutive years of lower performance scores, particularly those with “Impact 80” ratings or lower. Microsoft uses a 0–200 scale to evaluate employee performance, with 100 being the midpoint. Those rated at 80 or below receive fewer stock and bonus rewards and are now at risk of termination if they’ve remained in that lower bracket.

This mirrors Microsoft’s layoff round earlier in 2025, where around 2,000 lower-performing employees were cut.

Microsoft’s internal reorganization strategies don’t exist in a vacuum. They affect customers in several key ways:

1. Support Consistency Is Liable to Suffer

When middle managers leave, so does institutional knowledge. These roles often serve as the connective tissue between frontline support and engineering teams. Losing them can mean more friction during the escalation process, especially when it comes to navigating complex multi-product issues.

If support engineers leave or are shifted to meet new “builder ratio” goals, you may end up working with newer, less experienced resources.

2. Talent Loss Hurts Long-Term Relationships

Enterprise customers often build rapport with specific support personnel or account contacts. Turnover disrupts that. With Microsoft prioritizing coders over support-focused professionals, customer relationships may take a backseat to internal restructuring.

3. Shifting Priorities May Shift Quality

A push for leaner teams means remaining staff will be stretched thinner. Managers may be tasked with doing more with less. That pressure will likely be manifested as delayed response times, inconsistent advice, or escalations falling through the cracks.

In short: the Microsoft you work with today might not be the same Microsoft supporting you six months from now.

US Cloud offers complete support coverage across all Microsoft enterprise products.

At US Cloud, we offer Premier-style Microsoft support—backed by seasoned engineers, predictable SLAs, and a customer-first model that doesn’t get shaken by OEM layoffs.

Here’s what makes us different—and more reliable—than what Microsoft can offer amid its staffing churn:

Dedicated Support Engineers

You’re not getting rerouted through an endless loop of Tier 1 generalists. Our support model gives you access to certified, US-based engineers from day one. No language barriers. No slow escalations. No bots before humans.

Stability and Continuity

While Microsoft reshuffles its teams, we’re stable. We’re not under pressure to chase a “builder ratio” or cut support roles in favor of coders. Our engineers are the “builders” who develop customer trust, reliable fixes, and repeatable results.

Cost Savings Without Compromise

Our clients save 30-50% over Microsoft Unified (formerly Premier) Support, without sacrificing quality. In fact, clients inform us that we resolve issues faster and with more transparency than the OEM typically does.

SLA-Backed Confidence

We don’t hide behind vague promises or shifting policies. Our support is backed by real SLAs—response times you can plan around, not just hope for.

US Cloud resolves issues up to 3x faster than Microsoft.

Microsoft Expertise—Without the Red Tape

We’ve supported thousands of Microsoft environments across Azure, M365, Dynamics, and on-prem. We understand how Microsoft products work, how they break, and how to fix them—fast.

With May approaching, enterprises should take a moment to audit their Microsoft support strategy. Ask yourself:

• How much of our support relies on named Microsoft personnel?
• Have we already seen a drop in support quality or responsiveness?
• Are we getting real value from our Unified Support agreement—or just paying for the logo?

If your answers leave you uncertain, this may be the right time to evaluate a third-party partner like US Cloud.

Microsoft will likely continue reshaping its workforce throughout 2025. Efficiency is the stated goal, but for customers, it introduces risk. If you’re tied into Microsoft’s direct support model, you could end up paying more for slower service, delivered by a team in flux.

At US Cloud, we believe enterprise support should be predictable, personal, and performance-driven—no matter what’s happening at the OEM level.

If you’re ready to stabilize your Microsoft support and cut costs without cutting corners, we’re here to help.

US Cloud outperforms Microsoft support across all key metrics.

Book a US Cloud Call

When are the next Microsoft layoffs expected?

Reports suggest layoffs could happen as early as May 2025. The cuts are expected to focus on middle management and lower-performing employees.

What teams at Microsoft are most affected?

Specifics are still unclear, but teams with a high ratio of non-coders (PMs, project managers, etc.) are likely targets. Charlie Bell’s security org and similar areas are pushing for a 10:1 engineer-to-manager ratio.

Will these changes affect Microsoft’s customer support?

Most likely, yes. Staff turnover can lead to service inconsistency, longer response times, and delays in issue resolution.

How is US Cloud different from Microsoft Support?

US Cloud provides Microsoft support from certified, US-based engineers. We deliver faster resolutions, lower costs (30-50% savings), and more predictable service backed by SLAs.

Can US Cloud fully replace Microsoft Unified Support?

Yes. We support the same products—Azure, M365, Dynamics, Windows Server, SQL, and more. We offer direct access to engineers without ticket triage delays.

Is US Cloud affected by Microsoft’s internal layoffs?

Not at all. We’re an independent third-party support provider. Our staffing, performance, and quality of service are unaffected by Microsoft’s internal org changes.

How do I get started with US Cloud?

Contact us or schedule a support evaluation with our team. We’ll walk you through options, cost comparisons, and how we can make your support smoother and stronger.