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NRIPage | Articles | Microsoft Implements Job Cuts, Some Employees Denied Severance and Benefits | Get Engineering & Research News. Innovating for a Smarter Future around the world - NRI Page
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Microsoft Implements Job Cuts, Some Employees Denied Severance and Benefits

Microsoft Implements Job Cuts, Some Employees Denied Severance and Benefits

Microsoft Implements Performance-Based Layoffs, Raises Concerns Over Severance and Benefits

Microsoft has reportedly initiated performance-based layoffs, with employees being dismissed for not meeting the company’s job performance standards, according to Business Insider. Those affected are facing immediate termination of healthcare benefits, and in some cases, there has been no mention of severance pay, sparking concerns over the company’s handling of the situation. At least three former employees have claimed they were informed that they would not receive any compensation.

Termination letters issued to affected employees state that their access to Microsoft’s systems, accounts, and offices would be revoked immediately, and they would be prohibited from performing any further work for the company. Additionally, the letters specify that if these employees choose to reapply in the future, their past performance and termination reasons will be taken into account.

"The reason(s) for the termination of your employment include your job performance has not met minimum performance standards and expectations for your position. You are relieved of all job duties effective immediately, and your access to Microsoft systems, accounts, and buildings will be removed effective today. You are not to perform any further work on behalf of Microsoft," the termination letter states.

Sources indicate that this move is part of Microsoft’s increasingly strict performance management strategy, which now extends to senior employees in high-ranking positions. Despite the layoffs, Microsoft has indicated that many of these roles may be refilled in the future, meaning the overall workforce reduction may not be significant. As of June, Microsoft employed approximately 228,000 full-time workers.

A Microsoft spokesperson addressed the decision, stating:
"At Microsoft, we focus on high-performing talent. We are always working on helping people learn and grow. When people are not performing, we take the appropriate action."

Alongside these performance-related layoffs, Microsoft has also been implementing job cuts across multiple departments, including Security, Devices, Sales, and Gaming. However, these department-wide layoffs are separate from the performance-based terminations.

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