The reasons behind Microsoft DEI team’s layoff

With the Microsoft DEI team’s layoff, a significant incident has occurred as detailed in a revealing internal email. This communication, penned by the now-disbanded team’s leader, accuses Microsoft’s upper management of discrimination, harassment, and toxicity.

What’s the reason behind latest Microsoft DEI team’s layoff?

The email, initially exposed by Business Insider, disclosed that the layoffs, attributed to “changing business needs,” would take effect from July 1st, 2024.

The email raised concerns about the future of DEI initiatives not only within Microsoft but across the broader business spectrum.

“Unofficially in my opinion, not specific to Microsoft alone, but [conservative policy plan] Project 2025 looms and true systems change work associated with DEI programs everywhere are no longer business critical or smart as they were in 2020. Hence the purposeful and strategic 3-5 year shelf life of many company’s inclusion commitments post the murder of George Floyd are being reevaluated. And the way I see it, the timing was impeccable so businesses everywhere could reevaluate the path forward should their U.S. federal contracts be at risk if the work continues on its face,” the email reads according to IGN.

The email continued to commend the significant accomplishments of Microsoft’s DEI teams, highlighting how they surmounted seemingly insurmountable challenges during their time at the company. Despite these positive reflections, the email also contained serious allegations against the company’s executive leadership. It accused them of engaging in behaviors that had been investigated and confirmed as discriminatory, harassing, and toxic, directly affecting the DEI team members during their employment.

With the Microsoft DEI team’s layoff, a significant shift has occurred as detailed in a revealing internal email (Image credit)

“Our D&I commitments remain unchanged. Our focus on diversity and inclusion is unwavering and we are holding firm on our expectations, prioritizing accountability, and continuing to focus on this work,” stated spokesperson Jeff Jones.

Microsoft’s layoff spree

Since the onset of 2023, Microsoft has experienced a series of significant layoffs across various departments. The initial wave in January 2023 saw more than 10,000 employees dismissed, signaling a shift in the company’s operational focus. This pattern continued into July 2023 when another 10,000 employees were affected by similar layoffs, underscoring a consistent trend in the company’s restructuring efforts. The trend persisted into the following year, with January 2024 marking the dismissal of 1,900 employees, approximately 8.6% of the workforce in the gaming sector, which comprises 22,000 employees.

Most recently, in June 2024, Microsoft enacted additional layoffs within its Azure and mixed reality departments, impacting hundreds of employees. These layoffs, affecting up to 1,500 positions, form part of a broader reorganization strategy within Microsoft’s Strategic Missions and Technologies (SMT) group, aiming to realign the company’s resources and strategic focus in response to evolving business needs.

Featured image credit: Kerem Gülen/Midjourney