Microsoft won’t rehire underperforming ex-employees for 2 years

Microsoft

Microsoft has made a big decision, the company has said it won’t rehire ex-employees who were let go for poor performance for at least two years.

According to a Business Insider report, this is part of Microsoft’s new, tougher approach to managing how employees perform. If someone is fired because they didn’t meet expectations, they won’t be allowed to apply for a job at the company again for two years. Microsoft is calling these exits “good attrition,” meaning they believe the company is better off without those workers.

This isn’t just a random move — it’s part of a bigger plan to build a more efficient and high-performing team, especially as Microsoft focuses on growing in areas like artificial intelligence and cloud services. The tech giant wants to make sure every employee is helping push things forward.

Microsoft has also introduced a Performance Improvement Plan, or PIP. Here’s how it works: if a manager sees that someone isn’t performing well, the employee is given two options — try to improve through a set plan or take a voluntary exit package. If they choose the improvement plan but still don’t meet the mark, they’re let go and hit with the same two-year ban.

Earlier this year, Microsoft reportedly laid off around 2,000 employees for underperformance. Now, the new system is more structured. Internal emails say the plan has clear steps and deadlines for improvement. Those who choose to leave instead of going through the PIP can get a payout equal to 16 weeks of salary.

Other big tech companies like Meta and Amazon are doing similar things — becoming stricter with performance expectations and trimming teams that don’t meet the bar.