Tech giant Microsoft has started performance-based job cuts. The termination letters say benefits for the employees will stop immediately. Former employees said they won't receive severance. The letters also indicate that if these employees reapply to Microsoft in the future, their previous performance and the reason for termination will be considered.
Microsoft has reportedly begun firing employees on the basis of their performance with employees receiving termination notices due to not meeting the company’s job performance standards. According to a report in Business Insider, the affected employees will lose their jobs with immediate effect and receiving no severance packages, according to termination letters sent to staff.
The report suggests that the termination letters state that employees are being let go because their "job performance has not met minimum performance standards and expectations" for their positions." The report mentions that at least three employees have claimed they were informed by the company that they would not receive any compensation.
Moreover, in another strict measure, Microsoft is ending healthcare, prescription, and dental benefits on employees' final day of work. "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.
Defending company's action, a Microsoft spokesperson said, "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."
Why is Microsoft firing employees?
Microsoft is taking a stronger stance on performance management like its competitors, and managers at the company have spent the past few months evaluating employees all the way up to level 80, one of its highest levels. A company spokesperson declined to comment on Thursday. A Microsoft spokesperson previously confirmed the job cuts, saying that when people leave for performance reasons, Microsoft often backfills the roles, so there might be little change to the company's overall head count. At the end of June, Microsoft had roughly 2,28,000 full-time employees.
Microsoft also started cutting jobs this month across organizations, including security, experiences and devices, sales, and gaming, according to two people familiar with the matter. At the time, a spokesperson said those layoffs were separate from the performance-based cuts.
Source: The Economic Times
Bd-pratidin English/Fariha Nowshin Chinika
