HR News - Microsoft All Set to Layoff Underperformers, with Two-year Re-hire Ban

Microsoft is tightening its performance management policies to address underperformance, according to a report on Business Insider.

Microsoft Chief People Officer Amy Coleman, who took the helm in March 2025, in an internal email to managers, outlined the company's strategy to layoff underperformers. Accordingly, the tech giant has introduced new tools to help managers drive high performance and swiftly manage low performers. 

Other key changes include a two-year rehire ban and internal transfer restrictions for employees deemed underperforming. This shift reflects a broader industry trend toward stricter performance expectations, with efficiency prioritized over perks. 

These reforms come just weeks after Microsoft laid off 2,000 underperformers without severance, which drew widespread criticism.

As per reports, further cuts are awaited, particularly among managers and non-technical roles. 
 

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