Microsoft starts firing underperformers, employees claim company is not giving compensation

Microsoft has allegedly started layoffs based on performance, with employees being given termination notices for failing to meet the company’s job performance criteria. As reported by Business Insider, workers impacted by these layoffs will have their healthcare benefits terminate right away. In certain instances, there has been no reference to severance pay, prompting worries regarding the company’s stance.

The report states that a minimum of three employees have alleged that the company informed them they would not be compensated. The termination letters indicate that the employees’ access to Microsoft’s systems and premises would be terminated immediately, and they would be prohibited from doing any more work. The letters further state that if these employees choose to reapply to Microsoft later on, their past performance and the cause of their termination will be taken into account.

“The reason(s) for the termination of your employment include your job performance has not met minimum performance standards and expectations for your position. You are relieved of all job duties effective immediately and your access to Microsoft systems, accounts, and buildings will be removed effective today. You are not to perform any further work on behalf of Microsoft,” the letter stated.

Insiders familiar with the matter have disclosed that this action is part of Microsoft’s stricter performance management strategy, which includes evaluations of senior employees in high positions. Even with the layoffs, Microsoft has indicated that numerous positions are expected to be reoccupied, suggesting there might not be a significant decrease in total staff numbers. As of June, Microsoft employed roughly 228,000 full-time staff. A Microsoft spokesperson stated, “We emphasize high-performing talent at Microsoft.” We continually strive to assist individuals in their learning and development. “When individuals are underperforming, we implement the necessary measures.”

Moreover, Microsoft has been conducting layoffs in multiple sectors, such as Security, Devices, Sales, and Gaming. These job losses, however, are distinct from the performance-based layoffs.