Microsoft Layoffs: Satya Nadella’s company fires employees with immediate effect, denies severance pay

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Microsoft has started its performance-based job cuts which will lead to the affected employees losing their jobs with immediate effect and without any severance pay, according to a report by Business Insider. 

Microsoft’s letter to employees 

A letter sent by Microsoft to the concerned employees (via Business Insider) read, “The reason(s) for the termination of your employment including 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.”

“You are bound by the terms of your Microsoft Employee Agreement to return such materials and to protect Microsoft confidential information after termination of your employment.” the email added.

The Redmond-based tech giant also reportedly told these employees that if they apply for employment in the future, their past performance and basis of termination will be considered. Microsoft also asked them to return their company card key, corporate card, phone card and any other company property. 

Microsoft reacts to layoffs: 

The new redundancies are part of the company’s increasingly tough stance on performance management, following the lead of its competitors. According to reports, managers at Microsoft have spent the last few months evaluating employees up to level 80, one of the highest levels at the tech giant.

The tech giant has also begun the process of letting people go across various organisations, including security, experiences and devices, sales and gaming, Business Insider reported, citing two sources. However, a spokesperson told the publication that these layoffs were different from the performance-based cuts.

In a statement to Business Insider, explaining its decision, a Microsoft spokesperson said, “At Microsoft we focus on high performance talent… We are always working on helping people learn and grow. When people are not performing, we take the appropriate action.” 



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