Microsoft is giving employees labeled as “low performers” a tough choice: take 16 weeks of pay and leave the company or enter a performance improvement program. According to reports from NDTV and Financial Express, affected staff have just five days to decide their fate. This new policy, announced by Chief People Officer Amy Coleman, aims to tighten Microsoft’s performance management system and primarily affects mid-level managers and non-technical workers.
The Two Choices Explained
| Option | What It Means | Consequences |
|---|---|---|
| Take the money | Get 16 weeks of pay | Must leave company + 2-year rehire ban |
| Performance Plan | Try to improve work | Keep job if successful; fired if not |
The Performance Improvement Plan (PIP) is like a work probation where employees must show better results or face termination. Employees who choose either option cannot apply for other Microsoft jobs for two years, effectively closing the door on their Microsoft career for that period.
How Microsoft Identifies “Low Performers”
Microsoft uses a 0-200 point scale to rate employee performance. Those with scores of zero or 60% on this scale are considered underperforming. Think of it like a school grading system where these employees are receiving failing grades or barely passing marks. These low scores affect both stock awards and cash bonuses.
- Zero score: Considered failing performance, highest risk of termination
- 60% score: Significantly below expectations, facing difficult choices
- Performance ban: Low-rated employees cannot transfer to other Microsoft teams
- Future concerns: Additional layoffs possible in May 2025
This approach mirrors Amazon’s controversial “Pivot” program, which similarly targets employees the company considers underperforming. Microsoft, with approximately 228,000 workers, already cut around 2,000 low-rated employees earlier in 2025 without severance, making this new 16-week pay offer seem more generous by comparison.
Timing and Future Outlook
The policy is effective immediately, with employees receiving notice on April 22, 2025. Industry watchers suggest this move might signal additional workforce reductions planned for May 2025, particularly targeting middle management and non-technical positions.
This aggressive performance management approach reflects a broader trend in the tech industry where companies are tightening standards after years of rapid hiring. For affected Microsoft employees, the five-day deadline creates significant pressure to make a life-changing decision about their professional future.
