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Microsoft has introduced a stricter layoff policy, terminating employees for underperformance without severance or extended benefits. Affected workers face immediate dismissal, losing access to company systems, healthcare, and other perks on their last working day. The move, first reported by Business Insider, has sparked criticism over its harsh execution, raising concerns about fairness and employee morale. While Microsoft defends the decision as part of its commitment to a high-performance workforce, the policy’s long-term impact on job security and workplace culture remains uncertain.
Employees who are are being fired are told they are fired for “lack of meeting minimum performance standards and expectations.” Strict rules, including Microsoft systems, accounts and buildings being immediately taken away will be enforced through the letters.
Rejoining the market, terminated employees could not have received health, dental and prescription benefits on their final day of work, which has been a particularly severe policy that has drawn criticism.
“You are relieved of all job duties effective immediately,” the termination letters state, instructing employees to return all company property, including car keys, corporate credit cards, and Microsoft-owned hardware or software.
At least three former employees have said that those going through this termination have been denied severance payment by Microsoft. The letters also warn that it might be followed by future job applications at Microsoft and the reasons for dismissal will come into play.
This approach reflects a shift in Microsoft’s management of underperforming staff. A Microsoft spokesperson defended the company’s 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.”
Alongside these performance-related job cuts, which are happening alongside broader layoffs across Microsoft, are touching off divisions such as security, experiences, sales, and gaming. However, Microsoft clarified that these performance-driven terminations would not impact its overall manpower numbers significantly as the company usually backfills such positions.
According to June 2024, the company had an aggregate 228,000 global full-time employees. Terminated staff have been reminded that any such company proprietary information stored on personal devices must be deleted and that they should comply with the Microsoft Employee Agreement regarding confidentiality of proprietary information, Microsoft said.
The letter emphasizes that Microsoft will look at future employment application performance as well as the circumstances leading up to termination when assessing previous performance. Such a policy may restrict the possible return of the employees to the organisation.
The workforce reduction can be an indication that the self-imposed stricter measures are taken to manage performance by Microsoft which one of its ambitions is to keep a high performance workforce.
