Microsoft, which employs over 120,000 people in the U.S., has been undergoing significant workforce changes in line with broader corporate trends. In July of last year, the company quietly disbanded its diversity, equity, and inclusion team due to ‘changing business needs.’ Additionally, in October, as many firms tightened remote work policies, Microsoft informed its employees during an internal meeting that it would not mandate five-day office attendance unless productivity declined.
In January, Microsoft confirmed plans for job cuts this year, focusing on underperforming employees. A spokesperson stated, “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.” Subsequently, approximately 2,000 low-performing employees were terminated without severance.
Microsoft’s Chief People Officer, Amy Coleman, recently announced new tools to enhance high performance and swiftly address low performance. These include placing underperforming employees on a Performance Improvement Plan (PIP) with a globally consistent approach to set clear expectations and timelines for improvement. Employees can either accept the PIP or choose to leave the company via a Global Voluntary Separation Agreement. Furthermore, exiting employees will be ineligible for rehire or internal transfers for two years.
This move aligns with Meta’s recent actions, where CEO Mark Zuckerberg warned of job cuts based on performance. However, some Meta employees expressed surprise at being let go despite recent positive reviews.
— new from TheStreet