Microsoft has initiated performance-based layoffs, leading to the immediate termination of affected employees without severance pay. The move aligns with the company’s stricter approach to performance management, as reported by Business Insider. Employees were informed via email that they were being relieved of their duties immediately and would lose access to company systems and premises.

Termination Notice and Company Policies

In a letter sent to affected employees, Microsoft cited underperformance as the primary reason for termination. The email stated that employees must return all company property, including key cards and corporate cards. Additionallyit reminded them of their obligation to protect Microsoft’s confidential information even after termination.

The company also informed the terminated employees that if they apply for future roles at Microsoft, their past performance and reason for termination will be considered.

Departments Affected by Layoffs

According to reports, Microsoft managers have been assessing employees up to level 80, one of the highest tiers in the company. The job cuts have impacted multiple departments, including security, experiences and devices, sales, and gaming.

A Microsoft spokesperson clarified that these layoffs are part of broader performance evaluations and differ from other company-wide job cuts. The company emphasized its focus on retaining high-performance talent and taking necessary action when employees do not meet expectations.