Microsoft has initiated a wave of performance-based job cuts, with affected employees losing their jobs effective immediately and receiving no severance packages, according to termination letters sent to staff.
The termination letters, obtained by Business Insider, state that employees are being let go because their “job performance has not met minimum performance standards and expectations” for their positions.Impacted workers face immediate removal of access to Microsoft systems, accounts, and buildings.
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In a particularly strict measure, the company is ending healthcare, prescription, and dental benefits on employees’ final day of work. Three terminated employees confirmed they would not receive severance payments, highlighting the company’s harder stance on performance management.
“You are relieved of all job duties effective immediately,” the termination letters state, requiring employees to return all company property, including cardkeys, corporate American Express cards, and any Microsoft hardware or software in their possession.
The letters also warn that future employment applications to Microsoft will be evaluated considering “past performance and basis of termination,” potentially affecting former employees’ chances of returning to the company.
A Microsoft spokesperson defended the company’s actions, 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 performance-based cuts are occurring alongside separate layoffs across multiple divisions, including Security, Experiences and Devices, sales, and gaming. However, the company maintains that these performance-related terminations may not significantly impact overall headcount, as Microsoft often backfills these positions.
The company, which employed approximately 228,000 full-time workers as of June, requires terminated employees to permanently delete any company materials stored on personal devices and uphold their Microsoft Employee Agreement regarding the protection of confidential information after employment ends.