Microsoft Firing Employees Without Severance Pay? Here's What We Know So Far

Microsoft Layoffs: The letters notified employees of their immediate dismissal, with access to Microsoft’s systems, accounts, and buildings being revoked on the same day

Microsoft Layoffs: Microsoft has informed employees that if they seek future employment with the company, their prior performance and reasons for termination will be considered

Source : ABPLIVE AI

Microsoft Layoffs: Microsoft has started layoffs focused on job performance, with some employees being let go immediately without severance pay. According to Business Insider, termination letters revealed that those affected failed to meet the company’s minimum performance standards.

The letters notified employees of their immediate dismissal, with access to Microsoft’s systems, accounts, and buildings being revoked on the same day. There was no mention of severance, and at least three employees reported being told they would not receive any compensation. Additionally, healthcare, prescription, and dental benefits will end on their final working day, as per the report.

Microsoft has informed employees that if they seek future employment with the company, their prior performance and reasons for termination will be considered, potentially affecting their chances of being rehired. Employees are required to return all company property, including ID cards, corporate credit cards, and any Microsoft-issued hardware or software, according to the report.

A Microsoft spokesperson defended the decision, saying, "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 company is evaluating employees at various levels, including senior positions, as part of a more stringent performance management approach. A spokesperson had previously confirmed that performance-related terminations do not necessarily reduce overall headcount, as many roles are refilled.

In addition to the performance-based terminations, Microsoft has been reducing its workforce across several divisions, including security, sales, gaming, and the experiences and devices teams. These job cuts are separate from the performance-related dismissals.

The layoffs reflect a broader trend of restructuring within the tech industry. Google recently launched a voluntary severance program for its Android, Pixel, and Chrome divisions, while Amazon made cuts to its communications and corporate responsibility teams.