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Why Microsoft Just Tightened Its Policies for Firing Low Performers

  • Microsoft, ticker MSFT, is implementing performance management policies targeting underperforming employees, according to Business Insider.
  • These changes, detailed in an internal email, include barring poor performers from internal transfers and rehiring for two years.
  • Employees with zero to 60% Rewards outcomes or on a PIP will not be eligible for internal moves or rehire for two years.
  • Chief People Officer Amy Coleman said the company is introducing "new and enhanced tools" to boost performance and address underperformance.
  • Microsoft also introduced a voluntary exit plan, GVSA, and AI‑supported tools for managers to prepare for difficult conversations.
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Microsoft to target low-performing employees with harsh policies

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Microsoft announced “new and improved tools to accelerate high performance and quickly resolve low employee performance.”

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Business Insider broke the news in United States on Monday, April 21, 2025.
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