Microsoft has initiated layoffs targeting employees deemed under-performing, with some being dismissed immediately and without severance. According to Business Insider, termination letters cited failure to meet the company’s performance expectations as the reason for dismissal. Affected employees were instructed to return all company property, including key cards, corporate cards, and phones.
This latest wave of job cuts highlights Microsoft’s stricter stance on performance management, mirroring trends seen at competing firms. In recent months, managers have reportedly been evaluating employees at levels as high as 80. The layoffs are impacting various departments, including security, experiences and devices, sales, and gaming. However, a Microsoft spokesperson clarified that these redundancies are separate from performance-based terminations.
A letter sent to affected employees, obtained by Business Insider, stated: “Your job performance has not met the minimum standards and expectations for your position. Effective immediately, you are relieved of all job duties, and your access to Microsoft systems, accounts, and buildings will be revoked today. You not authorized to perform any work on behalf of Microsoft any longer.”
Additionally, the letter emphasized the obligation to return all company-owned materials and safeguard confidential information, as outlined in the Microsoft Employee Agreement.
Addressing the decision, a Microsoft spokesperson told Business Insider: “At Microsoft, we prioritize high-performance talent and remain committed to helping employees learn and grow. When individuals fail to meet performance expectations, we take appropriate action.”
The company has also warned that terminated employees’ previous performance and dismissal reasons may be considered if they apply for future roles at Microsoft, potentially affecting rehire eligibility.
These workforce reductions align with a broader restructuring trend across the tech industry. Other major firms, such as Google, have offered voluntary severance in certain divisions, while Amazon has cut jobs in communications and corporate responsibility teams. With approximately 228,000 full-time employees as of June 2023, Microsoft is among several tech giants tightening performance management and workforce optimization strategies.
