08:56 AM EST, 01/09/2025 (MT Newswires) -- (Updates with response from Microsoft ( MSFT ) in the third and fourth paragraphs.)

Microsoft ( MSFT ) plans to reduce less than 1% of its 228,000 employees in the next few months, The Information reported Wednesday, citing sources familiar with the matter.

The layoffs will reportedly be based on employee performance and span multiple divisions.

Microsoft ( MSFT ) said in a statement to MT Newswires it is "planning terminations related to performance across the company, and that when people leave for performance reasons, the company typically backfills the roles."

A Microsoft ( MSFT ) spokesman added, "At Microsoft ( MSFT ) we focus on high performance talent. We are always working on helping people learn and grow. When people are not performing, we take the appropriate action."

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)