Microsoft is introducing new policies aimed at enhancing performance management and addressing low performers. The tech giant’s new approach emphasizes rigor and accountability, shifting away from coddling underperforming employees.
As part of this effort, managers will have access to enhanced tools and a two-year rehire ban for employees found to be underperforming. This policy change is part of a broader trend in the industry, with many tech companies focusing on performance-based job cuts and efficiency.
Microsoft’s previous efforts include firing 2,000 employees deemed underperformers without severance, with managers evaluating employees up to the executive level as part of the company’s performance review and management process. The new policies aim to create a more transparent experience for both employees and managers, fostering accountability and growth.
The changes include:
– A two-year rehire ban for underperforming employees
– New tools for managers to accelerate high performance and address low performance
– Enhanced clarity and transparency in rewards processes
– A globally consistent approach to the Performance Improvement Plan (PIP)
– Restrictions on internal transfers and external rehire for underperforming employees
Microsoft’s goal is to create a culture where high-performing teams can thrive, driving success not just for the company but also for its customers and partners. The new policies aim to achieve this by emphasizing accountability, growth, and excellence, while providing support for managers in addressing performance challenges with clarity and empathy.
Source: https://www.businessinsider.com/microsoft-email-details-new-policies-cull-low-performers-2025-4