Microsoft has started firing its low-performance workers – some without severance — as the tech firm takes a more aggressive approach to its workforce, according to a report.
“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 termination letters, which were obtained by Business Insider, said.
“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.”
Microsoft did not immediately respond to a request for comment.
Impacted employees will lose their medical, prescription and dental benefits immediately, according to the letters.
If these staffers try to apply for jobs at the company in the future, their past performance and termination will be considered, according to the letters.
At least three staffers were told by Microsoft that they would not receive severance, people familiar with the situation told BI.
The cloud-computing company is trying to keep up with cutthroat rivals in the tech industry – like Elon Musk’s “hardcore” approach to performance.
The Tesla and SpaceX founder demanded staffers work “long hours at high intensity” when he took over Twitter in 2022. The performance crackdown pushed more than half of the company’s 4,000 staffers to leave, opting instead for three months of severance, according to BI.
Managers at Microsoft have spent the past few months evaluating their employees, people familiar with the plans told the news site.
Microsoft often backfills roles for performance-based cuts, so the company’s overall headcount might not see drastic changes, a spokesperson previously said. At the end of June, Microsoft had about 228,000 full-time workers.
But the tech firm has also been slashing jobs this month across its security, experiences and devices, sales and gaming divisions, which are separate from the performance-based cuts, according to the report.
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