Microsoft Fires Employees Over Performance Issues, Some Get No Severance
Microsoft Fires Employees Over Performance Issues, Some Get No Severance
Microsoft has initiated layoffs targeting employees based on job performance, with some being dismissed immediately without severance pay. This move is part of a broader restructuring trend within the tech industry.
According to a report by Business Insider, affected employees received termination letters citing their failure to meet the company’s minimum performance standards. The letters also stated that employees would lose access to Microsoft’s systems, accounts, and offices on the same day. Additionally, healthcare, prescription, and dental benefits will cease on their final working day.
At least three employees reported that they were explicitly informed they would not receive severance compensation. Furthermore, Microsoft has warned that if these employees seek reemployment with the company in the future, their past performance and termination reasons will be taken into account, potentially affecting their chances of being rehired.
Employees were also instructed to return all company property, including ID cards, corporate credit cards, and any Microsoft-issued hardware or software.
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 reportedly reviewing employees at various levels, including senior positions, as part of a more stringent performance management approach. However, Microsoft clarified that performance-related dismissals do not necessarily reduce overall headcount, as many roles will be refilled.
In addition to these performance-based terminations, Microsoft has been cutting jobs across multiple divisions, including security, sales, gaming, and the experiences and devices teams. These layoffs are separate from the performance-driven firings.
Microsoft’s job cuts align with a larger industry-wide restructuring. Google recently introduced a voluntary severance program for employees in its Android, Pixel, and Chrome divisions, while Amazon has laid off staff in its communications and corporate responsibility teams. As of June 2023, Microsoft employed approximately 228,000 full-time workers, making it one of the latest tech giants to adopt stricter performance management and workforce reduction strategies.
