Microsoft Fires Employees with Poor Performance, No Severance Pay

Microsoft has started making performance-based job cuts, where employees are let go immediately without receiving any severance pay. The decision, outlined in termination letters obtained by Business Insider, shows the company’s stricter approach to handling underperforming workers. These impacted employees will also lose their benefits on their last day of work.

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Immediate Termination and Loss of Access

Employees who are fired will have their job duties end right away. They will also lose access to Microsoft systems, accounts, and company buildings. As part of the termination process, these workers must return all company property, including card keys, corporate credit cards, and any Microsoft hardware or software in their possession.

Employees who are let go will need to delete any company files stored on their devices and continue to follow their Microsoft Employee Agreement, especially when it comes to protecting confidential company information after leaving.

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No Severance or Benefits

Unlike traditional layoffs, employees affected by these performance-based cuts will not receive any severance pay. In addition, their healthcare, dental, and prescription benefits will end on their last day of employment. This is a stricter policy compared to usual company layoffs.

Impact on Future Job Applications

The termination letters also make it clear that if these former employees apply for jobs at Microsoft again, their past performance and the reason for their termination will be taken into account. This could make it harder for them to return to the company in the future.

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Microsoft’s Reasoning 

A Microsoft spokesperson explained the company’s decision, saying, “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.” This shows the company’s ongoing focus on maintaining a strong workforce.

Other Layoffs Across Microsoft

In addition to the performance-based terminations, Microsoft is also laying off employees in other areas of the business, such as Security, Experiences and Devices, sales, and gaming. However, the company states that these performance-related terminations are not expected to have a large impact on the total number of employees, as many of these positions are usually refilled quickly.

Microsoft’s decision to immediately terminate employees based on performance, without severance pay or benefits, shows the company’s tougher approach to underperformance. While this policy is more strict than typical layoffs, it reflects Microsoft’s priority to maintain a high-performing workforce.

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