Microsoft has begun implementing performance-based layoffs, resulting in the immediate termination of affected employees without offering severance pay, as reported by Business Insider.
In a letter addressed to impacted employees, Microsoft stated:
“The reason(s) for the termination of your employment include your job performance not meeting the minimum standards and expectations for your position. Effective immediately, you are relieved of all job duties, and your access to Microsoft systems, accounts, and buildings will be revoked today. You are not to perform any further work on behalf of Microsoft.”
The company also informed employees that if they choose to reapply in the future, their past performance and the reasons for their termination will be taken into account. Additionally, they were instructed to return all company-issued property, including their cardkey, corporate card, and other items.
This move is part of Microsoft’s tightening stance on performance management, aligning with practices observed at competing tech firms. Reports indicate that managers have been evaluating employees, even those at senior levels such as level 80, one of the highest tiers at the company.
The layoffs extend across multiple departments, including security, experiences and devices, sales, and gaming. However, sources clarified to Business Insider that these layoffs are separate from the performance-based terminations.
In a statement to Business Insider, a Microsoft spokesperson explained the rationale behind the decision:
“At Microsoft, we prioritize high-performance talent and are committed to helping people learn and grow. When employees are not performing, we take the appropriate action.”
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