
In a new round of layoffs, American tech giant Microsoft has begun firing employees based on their job performance, with some individuals not receiving severance pay and losing healthcare benefits immediately, according to a Business Insider report.
Microsoft’s decision to let go of underperforming workers comes after an evaluation of employee performance, which included assessments up to level 80, one of the company’s highest employee tiers. The layoffs are affecting employees across various departments, including security, experiences, devices, sales, and gaming.
According to the termination letters cited by Business Insider, employees were informed that their job performance did not meet the minimum standards and expectations for their positions. The letters stated that these employees were relieved of all job duties immediately and would have their access to Microsoft systems, accounts, and buildings revoked. Additionally, the letters included a clause that stated Microsoft would consider past performance when determining whether an individual could be rehired if they apply for other positions within the company.
The termination letters further clarified that employees losing their jobs would no longer be covered under medical, prescription, and dental healthcare benefits, with immediate effect. In some cases, three employees reported not receiving severance pay, which is typically provided in standard layoffs.
This new round of job cuts follows a broader workforce review that Microsoft has been conducting over recent months. As of June 2024, Microsoft employed roughly 228,000 full-time employees. Despite the layoffs, the company’s overall headcount may remain relatively stable, as Microsoft plans to backfill certain roles.
This move comes as Microsoft continues to streamline its operations and focus on retaining talent that aligns with its long-term goals. The company has not publicly stated the exact number of employees impacted by the layoffs but has made it clear that performance was the primary factor in these terminations.
Sources By Agencies