Employees who failed to perform as per the standards expected by Microsoft have been laid off with immediate effect. Some of them will not be getting any severance either. The concerned employees’ access to the official systems, accounts and office premises were also withdrawn with immediate effect. They have all been ordered to return their identity (ID) cards, corporate credit cards, officially-issued hardware or software and other company property that they may have in their possession.
The impacted underperformers were informed via an official letter that they were being terminated because of they did not fulfil the minimum standards of performance set forth by the company. As per Business Insider, some employees were clearly told that they would not be compensated for being laid off. Various benefits, including healthcare and dental benefits would also be revoked.
If these terminated employees do apply to Microsoft for jobs later on, they have been told that their past performance and reasons for termination will be taken into account. That means, the terminated employees are hardly likely to be rehired.
The move is in keeping with Microsoft’s strict approach to performance. Also, the company does hire to fill vacancies, so the headcount, on the whole, is not significantly affected.
In January, Microsoft had laid off employees in the security, sales and gaming divisions. It had also implemented a hiring freeze in its US consulting division. The company had revealed plans to bring about a 35 per cent reduction in marketing and external resource costs as part of its broader cost-control measures.
