Microsoft has introduced stricter performance management policies that could make it more difficult for low-performing employees to stay with or return to the company, according to a recent Business Insider report. In an internal email, Chief People Officer Amy Coleman outlined new measures designed to enhance accountability, including a two-year rehire ban for employees who leave due to poor performance.
According to Business Insider, Microsoft’s updated guidelines now create a clearer distinction between high and low performers, particularly in terms of rewards. Employees who fall into the bottom 60% of performance ratings will no longer be eligible for internal transfers, limiting their career mobility within the company. Those placed on formal improvement plans will face a structured timeline to meet targets or leave under the newly introduced ‘Global Voluntary Separation Agreement (GVSA)’, a voluntary exit option with undisclosed terms.
These changes follow broader industry trends as tech companies focus on efficiency after years of rapid expansion. Earlier this year, Microsoft reportedly let go of around 2,000 underperforming employees without severance as part of a sweeping review that even assessed senior leadership, according to an earlier Business Insider report. The company is now intensifying its focus on performance transparency by equipping managers with new evaluation tools and AI-powered training to navigate difficult feedback discussions.
While Microsoft has not publicly commented on these new policies, internal documents suggest that they are aimed at fostering a more “meritocratic” culture, rewarding top contributors while quickly addressing stagnation. Whether these changes will improve employee morale or lead to higher attrition remains to be seen, but one thing is clear: even Microsoft is no longer offering unlimited second chances in today’s competitive tech landscape.
