Microsoft Tightens Rules for Low Performers

Microsoft has implemented stricter performance management policies, introducing a globally consistent Performance Improvement Plan (PIP) that includes clear expectations, timelines, and a voluntary exit option with separation packages. Employees rated as poor performers are now barred from internal transfers and face a two-year rehire ban if they leave or are terminated for underperformance. These changes were communicated by Chief People Officer Amy Coleman, aiming to increase transparency and consistency in performance evaluations and rewards. The company is also equipping managers with AI-supported tools to better handle performance conversations. The move follows earlier layoffs of roughly 2,000 underperformers without severance and aligns with a broader industry shift toward prioritizing efficiency. Microsoft seeks to foster a high-performance, meritocratic culture with these updates.