- Microsoft has introduced stricter performance management policies
- This includes a two-year rehire ban for employees who exit due to poor performance
- The company is reportedly planning another round of layoffs in May 2025
Back in 2022, when tech layoffs saw a sudden uptick, the world plunged into a state of panic. According to reports, around 93,000 U.S. tech workers were given the pink slip that year. In India too, layoffs in the tech industry saw a sudden surge. Fast forward to 2025, companies continue laying off employees by citing numerous factors. There are also many new workplace trends emerging and one of them is companies shifting towards performance-based evaluations as part of a broader strategy.
Microsoft is making headlines for implementing stricter performance management policies. This includes a two-year rehire ban for employees who leave due to poor performance and restrictions on internal transfers for underperformers. The company has also introduced a “ManageRewards” slider to evaluate employee performance.
Microsoft cracks down on low-performing employees
Microsoft’s new policies introduce a two-year rehire ban for employees who leave the company due to poor performance. Additionally, underperforming employees are now restricted from transferring to other roles within the company.
According to an internal memo which was seen by Business Insider, the company’s new Chief People Officer, Amy Coleman, wrote, “If an employee is not meeting expectations, you can use the Performance Improvement Plan (PIP), a new globally consistent approach to set clear expectations and a timeline for improvement. The employee can accept the improvement plan or choose to transition out of the company with the offer of a Global Voluntary Separation Agreement (GVSA). This performance improvement process is available year-round so you can act quickly to transparently address performance issues, while offering employees choice.”
The memo added, “employees with zero and 60 per cent Rewards outcomes and/or on an active PIP will not be eligible for internal transfers. Former employees who left with zero or 60 per cent Rewards or during/after a PIP will not be eligible for rehire until two years after their termination date.”
The company has also introduced a Global Voluntary Separation Programme, providing employees who do not meet performance expectations with the option to exit the company voluntarily.
Another round of layoffs at Microsoft?
Microsoft was recently in the limelight for laying off around 2,000 workers, without severance pay. And about a week back, reports of yet another possible layoffs round were also surfacing. An earlier Business Insider report had said that Microsoft is reportedly planning another round of layoffs, primarily targeting middle management and non-technical roles.
The report added that the fresh round of layoffs were expected to begin next month (May 2025), and aim to improve the ratio of engineers to non-engineers within project teams. It is to be noted that Microsoft hasn’t announced anything relating to layoffs yet.
