Microsoft has begun performance-based layoffs that result in immediate termination and no severance pay, a move aimed at strengthening its competitive edge. The action, first reported by Business Insider, underscores Microsoft’s shift towards stricter talent management practices.
Strict Termination Measures Implemented
In a letter to affected employees, Microsoft emphasized that job performance had not met the minimum standards. “You are relieved of all job duties effective immediately,” the letter stated, with instant removal of access to Microsoft systems and offices. Employees were required to promptly return company property and were warned that future job applications would consider their termination records.
A Broader Workforce Strategy
Insiders revealed that despite layoffs, vacant roles are often refilled through new hires, allowing Microsoft to maintain a relatively steady workforce of approximately 228,000 globally. This approach aligns with the company’s effort to prioritize high-performing employees while conducting thorough performance reviews, even at senior levels.’
Also read: Govt Plans Healthcare Scheme for 1 Crore Gig Workers
Microsoft’s History of Workforce Restructuring
This latest wave of performance-based exits follows a pattern of significant layoffs under CEO Satya Nadella’s leadership since 2014. Microsoft cut 18,000 jobs that year, followed by 10,000 layoffs in 2023. The company has also made targeted reductions in its gaming and Mixed Reality divisions.
The performance-based layoffs reflect Microsoft’s ongoing strategy to remain agile and competitive in a rapidly evolving tech landscape.
