Microsoft has started a new round of layoffs, focusing on employees whose performance does not meet the company’s expectations. According to a Business Insider report, the tech giant is dismissing underperforming staff in the US, and the decision comes after a recent performance evaluation across all employee levels, including those at high-ranking positions.
The company has informed employees about their termination through letters, stating that their job performance did not meet the required standards. The letters stated that Microsoft immediately relieved employees of all job duties and revoked their access to Microsoft systems, accounts, and buildings. In some cases, the company did not provide severance pay, and it terminated their healthcare benefits, including medical, prescription, and dental coverage, right away.
The termination letters further clarified that Microsoft would consider an employee’s past performance if they apply for other roles within the company in the future. This suggests that the company is placing significant weight on both current and historical performance when making these decisions.
This layoff round follows a company-wide performance evaluation conducted over the past few months. Microsoft reportedly assessed employees across all levels, up to level 80—one of its highest ranks. Despite the layoffs, the company’s overall workforce is expected to remain relatively stable, as Microsoft plans to backfill the positions with new hires.
Earlier this month, Microsoft also made cuts in various departments, including security, experiences and devices, sales, and gaming. This move is part of a broader trend in the tech industry where companies have increasingly focused on optimizing their workforce to align with business goals and profitability.
As of June 2024, Microsoft had approximately 228,000 full-time employees, with no major changes anticipated in the total headcount following these layoffs. The company’s focus appears to be on improving overall performance and ensuring that its workforce aligns with the company’s objectives moving forward.
These recent layoffs, along with earlier job cuts, highlight Microsoft’s ongoing efforts to streamline operations and focus on high-performance employees across its various business units.
