News

Microsoft is changing how it deals with employees who aren’t meeting expectations—and it’s giving them a tough choice.According to a report by Business Insider, the company is now offering some underperforming employees a payout if they agree to leave voluntarily. They’ll get 16 weeks of pay—but they only have five days to decide. If they choose to stay, they’ll be put on a performance improvement plan, or PIP, which could lead to termination if things don’t improve.

In an internal email, Microsoft’s new Chief People Officer, Amy Coleman, said this is part of a more transparent way to handle performance issues. She called it a system that gives employees a choice. But once someone picks the PIP route, they’re no longer eligible for the payout.

There are other consequences too. Employees who leave during or after the PIP, or who got low performance ratings, won’t be able to return to Microsoft for two years. They also won’t be allowed to switch to other roles within the company.

The move is being compared to Amazon’s “Pivot” program, which also gave employees in similar situations the option to leave with a severance. That program was heavily criticized for focusing more on pushing people out than helping them grow.

Microsoft hasn’t commented publicly yet, but the changes suggest the company wants to be more aggressive about keeping only top performers—something we’ve also seen at companies like Meta. Earlier this year, Meta put thousands of low-performing employees on blocklists so they couldn’t be rehired.

It’s still not clear how this new Microsoft policy will work in countries outside the U.S., where labor laws are different. But one thing’s clear: the message to employees is—perform, or prepare to leave.

DAILY-EVENING

DAILY-EVENING

Discover the latest Business News, Budget 2025 News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!

${res.must_watch_article[0].headline}

Sensex Today RIL Q4 Results 2025 Jammu Kashmir News Live Ather Energy IPO Tejasvi Surya Gautam Gambhir Bajaj Housing Finance Share Price Manipur HS Result KTET Result 2025 IPL Points Table 2025

Business Markets Stocks India News City News Economy Mutual Funds Personal Finance IPO News Startups

Home Currencies Commodities Pre-Market IPO Global Market Bonds

Home Loans up to 50 Lakhs Credit Cards Lifetime Free Finance TrackerNew Fixed Deposits Fixed Deposit Comparison Fixed Income

Home MC 30 Top Ranked Funds ETFs Mutual Fund Screener

Income Tax Calculator EMI Calculator Retirement Planning Gratuity Calculator

Stock Markets

News18 Firstpost CNBC TV18 News18 Hindi Cricketnext Overdrive Topper Learning

About Us Contact Us Advisory Alert Advertise with Us SupportDisclaimer Privacy Policy Cookie Policy Terms & Conditions Financial Terms (Glossary) Sitemap Investors

You are already a Moneycontrol Pro user.