The Microsoft layoff strategy now gives underperforming employees a choice.
Microsoft’s new HR policy offers a 16-week severance payout through a Performance Improvement Plan (PIP), with a 5-day deadline to accept or leave.
Those who opt for the PIP but fail lose the payout and face a two-year rehiring ban within the company.
This follows Microsoft’s earlier layoff of 2,000 underperforming staff in 2025.
Chief People Officer Amy Coleman emphasized fostering a transparent culture while addressing performance issues swiftly, impacting roles across all levels.
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