- Microsoft has started performance-based job cuts, according to termination letters seen by BI.
- The letters state benefits stop immediately. Ex-employees also say they won’t receive severance.
- As BI reported earlier this month, Microsoft is taking a stronger stance on performance management.
Microsoft has started performance-based job cuts, according to termination letters viewed by Business Insider.
Employees losing their jobs will see healthcare benefits end immediately, the letters state. In three specific cases, employees were told by Microsoft they’re not getting severance, according to people familiar with the situation. These people asked not to be identified discussing sensitive topics.
“The reason(s) for the termination of your employment include your job performance has not met minimum performance standards and expectations for your position,” the letters viewed by BI state. “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 letters do not mention severance, but note that medical, prescription, and dental benefits end on the last day of employment. The letters also say that Microsoft will consider past performance and termination if the person applies for other jobs at the company in the future.
As BI reported earlier this month, 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, stating that when people leave for performance reasons, Microsoft often backfills the roles, so there may be little change to the company’s overall headcount. At the end of June, Microsoft had roughly 228,000 full-time employees.
“At Microsoft we focus on high performance talent,” the spokesperson said. “We are always working on helping people learn and grow. When people are not performing, we take the appropriate action.”
Microsoft also this month started cutting jobs 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.
Read an excerpt from Microsoft’s performance-based termination letters:
“The reason(s) for the termination of your employment include your job performance has not met minimum performance standards and expectations for your position. 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.
Note: If you apply for employment at Microsoft in the future, your past performance and basis of termination will be considered.
You must immediately return your Microsoft cardkey, corporate American Express card, phone card, and any other Microsoft property, including but not limited to hardware, software, email files, source code, customer contact information, financial data, status reports, or any other proprietary or confidential data or trade secret information that you have in your possession to me.
You are bound by the terms of your Microsoft Employee Agreement to return such materials and to protect Microsoft confidential information after termination of your employment. If any such materials are stored on any personal device (including, without limitation, computers, mobile phones, tablets, storage devices) you are required to permanently delete them.”
Are you a Microsoft employee, or do you have insight to share? Contact the reporter Ashley Stewart via the encrypted messaging app Signal (+1-425-344-8242) or email ([email protected]). Use a nonwork device.
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