Microsoft has started laying off employees based on their job performance, affecting some workers who were let go immediately without any severance pay. Reports from Business Insider reveal that the termination notices explained that the employees in question did not meet the company’s minimum performance requirements.
The laid-off employees received letters that notified them of their immediate dismissal, resulting in lost access to Microsoft’s systems, accounts, and buildings—all effective on the same day. Notably, there was no mention of severance packages, and at least three individuals indicated they were informed they would not receive any compensation. Additionally, healthcare and dental benefits would end on their final working day.
According to Microsoft, if these employees wish to apply for jobs in the future, their prior performance and reasons for termination will be taken into account, which may affect their chances of being rehired. Employees are also required to return all company property, including ID cards and any Microsoft-issued devices.
A Microsoft spokesperson explained the company’s stance, emphasizing, “At Microsoft, 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.” This approach extends to employees at various levels, including senior positions, as the company adopts a more rigorous performance management system. It’s important to note that firings due to performance will not necessarily cut down the overall number of employees, as many positions may be filled again.
In addition to performance-related dismissals, Microsoft has been reducing its workforce across several departments, including security, sales, gaming, and experiences and devices. These layoffs are distinct from the performance-based terminations.
This trend is part of a larger restructuring movement in the tech sector, with companies like Google also implementing voluntary severance programs and Amazon laying off staff from its communications and corporate responsibility teams. As of June 2023, Microsoft employs roughly 228,000 people, making it one of the latest tech giants to enforce stricter performance evaluations and job cuts.
