In a move that has drawn widespread attention, Microsoft has initiated layoffs based on employee performance, leaving affected workers without severance benefits or extended healthcare coverage. According to a report from Business Insider, termination notices have already been issued, citing failure to meet "minimum performance standards and expectations" as the primary reason for job loss.
Immediate Job Terminations Without Severance
Employees who received termination notices were informed that their employment would end immediately. Affected workers lost access to Microsoft systems, accounts, and buildings on the same day. The termination letters, as obtained by Business Insider, stated, "You are relieved of all job duties effective immediately and your access to Microsoft systems, accounts, and buildings will be removed effective today. You are not to perform any further work on behalf of Microsoft."
The layoffs include another controversial measure: Microsoft is not offering severance packages. At least three employees reportedly confirmed to Business Insider that no compensation would be provided post-termination. Additionally, healthcare, dental, and prescription benefits for impacted employees will cease on the final day of employment.
Stricter Performance Standards
Microsoft appears to be doubling down on stricter performance evaluations, with managers reportedly assessing employees over the last several months. This includes employees across all levels, even up to level 80, one of the company’s highest ranks. The termination letters also warned that any future job applications to Microsoft would take past performance and the grounds for termination into consideration.
Microsoft’s Response and Layoff Scope
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 tech giant’s recent job cuts affect employees in divisions such as security, experiences and devices, sales, and gaming, according to sources familiar with the situation. However, these layoffs are reportedly separate from the performance-based terminations. Despite these measures, Microsoft has indicated that its total workforce numbers are unlikely to change significantly, as it typically backfills roles vacated through performance-based terminations.
With approximately 228,000 full-time employees as of June, Microsoft continues to be a dominant player in the tech industry. However, these terminations and the lack of severance benefits have raised questions about the company’s commitment to employee welfare during challenging times.
Microsoft’s decision to forgo severance payments and end healthcare benefits immediately adds another layer of controversy to the ongoing wave of layoffs in the tech sector. The ultimate impact on the company and its workforce remains to be seen.
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