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Monday, June 23, 2025

Microsoft rolling out ‘new and enhanced tools’ to cull low performers - Samfiru Tumarkin LLP

What’s going on at Microsoft?

Microsoft is rolling out “new and enhanced tools” to help managers “swiftly address low performance.”

Key takeaways from a recent memo sent by the Amy Coleman, the tech giant’s chief people officer, include:

  • A new “Rewards” system designed to help managers make decisions that align with Microsoft’s high-performance expectations.
  • Giving low performers the option to participate in a Performance Improvement Plan (PIP) or accept a voluntary severance package.
  • Staff with zero or 60 per cent “Rewards outcomes” (or are actively participating in a PIP) will not be eligible for internal transfers.
  • Workers who leave the company with zero or 60 per cent “Rewards outcomes” will face a two-year rehire ban.

WATCH: Employment lawyer Lior Samfiru breaks down everything you need to know about PIPs on an episode of the Employment Law Show.

“Our goal is to create a globally consistent and transparent experience for employees and managers (subject to local laws and consultation),” Coleman said in the memo.

“These tools will also help foster a culture of accountability and growth by enabling you to address performance challenges with clarity and empathy.”

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