$Microsoft (MSFT.US)$ plans to reduce its workforce, targeting employees not meeting performance expectations.

What Happened: A spokesperson for Microsoft confirmed the upcoming job cuts to Business Insider but did not specify the number of employees affected.

"At Microsoft, we focus on high-performance talent," the spokesperson stated. "We are always working on helping people learn and grow. When people are not performing, we take the appropriate action."

Microsoft did not immediately respond to Benzinga's request for comments.

As of June, Micorosft employed approximately 228,000 full-time workers. The job cuts are expected to impact various divisions, including the security sector, the report noted.

Why It Matters: This latest round of job cuts is part of a broader trend at Microsoft, which has made several workforce adjustments in 2024.

The company let go of nearly 2,000 workers from its gaming division. Then in June, Microsoft reduced its workforce by approximately 1,000 employees. In July, it conducted another round of layoffs and in September, Microsoft laid off another 650 employees in its gaming division.

Microsoft currently has a market cap of $3.156 trillion, making it the third most valuable company in the world.

Price Action: Microsoft's stock ended Wednesday's trading session up 0.52% at $424.56. However, in after-hours trading, the shares saw a slight dip of 0.13%, as per Benzinga Pro data.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.