Microsoft has initiated layoffs targeting employees based on job performance, with some workers being dismissed immediately without severance pay. According to Business Insider, termination letters indicated that the affected employees did not meet the company's minimum performance standards.
The letters informed employees of their immediate dismissal, revoking access to Microsoft’s systems, accounts, and buildings on the same day. There is no mention of severance, and at least three employees reported being told they would not receive compensation. Furthermore, healthcare, prescription, and dental benefits will cease on their final working day.
Microsoft has warned that if these employees seek future employment with the company, their previous performance and termination reasons will be considered, potentially impacting their rehire opportunities. Employees are instructed to return all company property, including ID cards, corporate credit cards, and any Microsoft-issued hardware or software.
According to the report, a Microsoft spokesperson defended the decision, stating, "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."
The company is reviewing employees at various levels, including senior positions, as part of a stricter performance management approach. A spokesperson previously confirmed that performance-related dismissals do not necessarily reduce overall headcount, as many roles are refilled.
In addition to these performance-based terminations, Microsoft has been cutting jobs across several divisions, including security, sales, gaming, and the experiences and devices teams. These layoffs are separate from performance-related firings.
The job cuts align with a broader trend of restructuring in the tech industry. Google recently introduced a voluntary severance program for its Android, Pixel, and Chrome divisions, while Amazon laid off staff in its communications and corporate responsibility teams. Microsoft, with approximately 228,000 full-time employees as of June 2023, is the latest major tech company to adopt a stricter performance management and workforce reduction strategy.