Microsoft has introduced a new performance improvement plan that gives low-performing employees a choice: either accept a payout to quit or risk going through a more rigorous evaluation process. The company’s approach is similar to Amazon’s Pivot program, which has been criticized by some employees.
Under the new system, affected staff will receive a Global Voluntary Separation Agreement (GVSA) and can choose between entering a Performance Improvement Plan (PIP) or accepting the payout. If they opt for the PIP, they’ll no longer be eligible for the payout.
The payment amount is reportedly 16 weeks of pay, and employees have just five days to decide which option to take. The new system aims to provide transparency and give employees choice, but it’s unclear how it will work outside the US, as other countries have different laws.
Microsoft’s shift towards stricter performance expectations comes as the tech industry as a whole is moving in this direction. Earlier this year, the company fired 2,000 underperforming employees without severance. Now, leaders are considering additional performance-based cuts and restructuring plans.
Source: https://www.businessinsider.com/microsoft-pivot-amazon-low-performers-paying-employees-to-leave-2025-4