Microsoft FY 2025 Starts With Layoffs, Partner Program Changes

Based on user posts to Microsoft-owned social network LinkedIn, the cuts have hit a variety of managers, engineers and other job titles in Microsoft.

Microsoft’s new fiscal year has started with a round of layoffs and some changes in its partner program, especially around requirements for specializations.

Layoffs aren’t unusual for Microsoft this time of year. The Redmond, Wash.-based tech giant started its 2025 fiscal year July 1 and should report results for the 2024 fiscal year and final quarter of that year later this month.

Based on user posts to Microsoft-owned social network LinkedIn, the cuts have hit a variety of managers, engineers and other job titles in Microsoft subsidiaries Flip and Nuance and even in areas that touch its fast-growing artificial intelligence (AI) business.

As for partner program changes, early announcements on Microsoft’s Partner Center don’t appear to reach the level of a New Commerce Experience (NCE), but still have an effect on how solution providers earn benefits as a Microsoft partner.

Microsoft FY2025

On the layoffs, a Microsoft spokesperson told CRN in an email that “organizational and workforce adjustments are a necessary and regular part of managing our business.”

“We will continue to prioritize and invest in strategic growth areas for our future and in support of our customers and partners,” the spokesperson said.

CRN has also reached out to Microsoft for comment on the partner program changes.

The program changes come as Microsoft readies for its MCAPS Start for Partners digital event Wednesday.

Instead of holding a Microsoft Inspire partner-focused event in 2024, the vendor will instead add partner-focused programming to its Microsoft Ignite customer-focused event in November, according to Microsoft.

MCAPS Start is the annual event aimed at sellers in the global Microsoft Customer and Partner Solutions (MCAPS) organization. This year, Microsoft has added partner-specific content to MCAPS Start to prepare solution providers for the year ahead.

The event will feature talks from Microsoft executives Judson Althoff, executive vice president and chief commercial officer; Nick Parker, president of the Industry and Partner Sales (IPS) organization; and Nicole Dezen, chief partner officer and corporate vice president of the Global Partner Solutions organization.

Here’s more to know on Microsoft’s latest round of layoffs and partner program changes.

PTUs A New Purchase Option

As part of Microsoft’s first batch of partner program changes for the new fiscal year, the vendor is adding provisioned throughput units (PTU) as a purchasing option for Azure OpenAI through self-service and the Cloud Solution Provider (CSP) models.

Starting this quarter, CSP partners can transact Azure OpenAI provisioned throughput deployments for customers.

Payments are possible per hour through Azure Reservations that provide discounts in one-month commitments, one-year commitments or a mix, according to Microsoft. This marks the first Azure service with a monthly term option for reservations.

Azure OpenAI inference model users can also buy models in a pay-as-you-go offer charged per token, according to Microsoft.

Users must fill an application form to onboard subscriptions to Azure OpenAI in the same way they do for standard, token-based deployments. CSP partners can help their customers manage quota, create deployments and purchase reservations through self-service.

Before this new PTU option, users bought reserved capacity in manual, ad hoc Microsoft field sales engagements without a self-service or partner-supported option. The previous way of buying PTUs required a one-month lock-in, alienating users with short-term or intermittent-use needs, according to Microsoft.

Microsoft will hold an online training Tuesday for CSP partners to explain the new PTU process.

Cert Changes For Designations

A series of changes for earning Solutions Partner designations and specializations as part of the Microsoft AI Cloud Partner Program have gone into effect this month.

For partners already enrolled in the affected specializations, they have until Dec. 31 to meet Microsoft’s new criteria to keep the specializations.

Starting in July, Microsoft has updated the “skilling” requirements for the Analytics on Microsoft Azure, Business Intelligence, Data Warehouse Migration to Microsoft Azure, Teamwork Deployment and Supply Chain specializations.

The Analytics on Microsoft Azure specialization now requires holders to pass the Fabric Analytics Engineer Associate (DP-600) certification, replacing the Azure Solutions Architect Expert (AZ-305) certification.

Business Intelligence specialization now includes the Fabric Analytics Engineer Associate (DP-600) certification – the Azure Enterprise Data Analyst Associate (DP-500) certification was retired April 30. The DP-500 exam still counts if partners passed it before April 30.

Data Warehouse Migration to Microsoft Azure specialization now includes the Fabric Analytics Engineer Associate (DP-600) certification – replacing the Azure Solutions Architect Expert (AZ-305) certification.

The Analytics on Microsoft Azure and Data Warehouse Migration to Microsoft Azure specializations also increased the number of certified people needed from – three to five, with at least two people needed to hold each certification.

For Teamwork Deployment specialization seekers, Microsoft has removed the retired Messaging Administrator Associate (MS-203) certification requirement and doubled the number of people needed to pass the remaining Teams Administrator Associate (MS-700) certification from two to four.

Supply Chain specialization seekers now need the Dynamics 365: Finance and Operations Apps Developer Associate (MB-500) and the Dynamics 365 Supply Chain Management Functional Consultant Expert (MB-335) certifications instead of the retired Dynamics 365 Supply Chain Management, Manufacturing Functional Consultant Associate (MB-320) certification. Each of the four certifications must be held by at least one person, according to Microsoft.

Viva Glint Goes GA

On July 1, Microsoft made its Viva Glint employee engagement survey product GA available for CSP transactions.

Glint was already available as part of the Viva Suite stock-keeping unit (SKU) and the Viva Glint charity SKU. Users need to buy at least 50 seats and a base Entra SKU.

“Viva Glint success relies on advisory and people science services,” according to Microsoft. “Ideal partners have experience in employee engagement consulting, human capital, people advisory consulting, or consulting to HR and leadership teams. Partners with experience in complementary Viva Apps, such as Insights, can also expand their practice by enabling their team on Viva Glint.”

Security, SCS Updates

On July 31, Microsoft will release a new version of its Security Alert application programming interface (API).

Microsoft Graph Security Alerts API V1 (full) version promises a “unified API gateway across Microsoft services,” according to Microsoft. The vendor will deprecate the existing Azure fraud notification API by the end of the year. A preview, beta version of the new API is available.

This month, Microsoft starts mandating multi-factor authentication (MFA) for all Azure users.

And finally, year one extended security updates (ESUs) for SQL Server 2014 start on Wednesday. These ESUs end July 8, 2025, and are meant to ease the transition to newer products.

The Microsoft AI Cloud Partner Program Signature Cloud Support (SCS) benefit available to partners with a solution area Solutions Partner designation or who previously bought a Gold or Silver legacy benefits package is now officially limited to 50 incidents per year.

The limit went into effect starting July 1 and starts for partners once they renew their Solutions Partner designation or legacy benefits package, according to Microsoft.

Layoffs Across Nuance, Flip, AI

Multiple LinkedIn users posted online about layoffs at Microsoft hitting a variety of areas, from gaming to Dynamics 365 to subsidiaries Nuance and Flip.

The employees let go from Microsoft range from spending a year with the company to at least one veteran who clocked in 14 years.

The Flip cuts come as no surprise, with the 12-year-old organization set to retire its website and mobile applications by September 30, according to Flip, which Microsoft purchased in 2018 to grow its education market presence.

Flip’s mobile app was removed from stores starting July 1. Flip features have been moving into Microsoft Teams for Education, according to Flip.

As for Nuance, Microsoft completed its $19.7 billion acquisition of the voice recognition company in 2022.

These are the employees who have

An employee of 14 years whose most recent title was technical program manager for device services and device repair engineering
A senior product manager with Microsoft for about three years whose work has included Microsoft Dynamics 365 uses
An employee of nine years who most recently held the title of senior business product manager who worked in Xbox on gaming and learning
An employee of nine years who held the title of director and oversaw “Microsoft's A.I. professional development strategy to empower and support educators and school leaders on their continued journey as they make an impact in the lives and futures of the students with whom they work”
An employee of about six years who held the title of head of engagement at Microsoft Flip
An employee of one year who held the title of technical specialist and worked on Microsoft subsidiary Nuance’s DAX and Dragon offerings
An employee of two years who held the title of software engineer and worked on Bing Search Engine Results Page (SERP)
An employee of about three years who worked as a level two software engineer and whose projects included the migration of Microsoft acquisition TakeLessons onto Microsoft platforms and some Bing projects
An employee of about a year who served as a regional account executive (AE) in the Central U.S. and came to Microsoft with the Nuance acquisition
An employee of about three years who held the title of director of business programs for Microsoft Partner Delivery Orchestration Center (PDOC) sales excellence
An employee of about five years who served as an Azure and AI consultant
An employee of about four years who worked as a business program manager for government contracts compliance
An employee of about three years who served as educator innovation lead at Microsoft Flip (formerly Flipgrid)
An employee of about three years who worked as a senior community lifecycle product manager and worked on Flip