Microsoft Unveils Devastating Layoffs: Thousands to Lose Jobs Without Severance Pay
In a move that has sent shockwaves through the tech industry, Microsoft has initiated massive layoffs targeting employees based on job performance, leaving thousands without severance pay. According to reports, termination letters have been dispatched to employees who did not meet the company's minimum performance standards, informing them of their immediate dismissal and revoking access to Microsoft systems, accounts, and buildings.
At least three employees reported being told they would not receive compensation upon termination, highlighting a severe disregard for the welfare of workers. In addition, healthcare, prescription, and dental benefits will cease on their final working day. Microsoft has informed affected employees that if they seek future employment with the company, their previous performance and termination reasons will be considered, potentially impacting their rehire opportunities.
The decision to initiate these layoffs was defended by a Microsoft spokesperson as part of the company's focus on "high-performance talent" and fostering an environment where people can "learn and grow." Employees are instructed to return all company property, including ID cards, corporate credit cards, and any Microsoft-issued hardware or software.
Beyond the performance-based terminations, it has emerged that Microsoft is undergoing significant restructuring efforts across its various divisions. Several roles, including security, sales, gaming, and experiences and devices teams, have been affected. These job cuts are part of a broader trend in the tech industry, with Google recently introducing a voluntary severance program for its Android, Pixel, and Chrome divisions.
Amazon has also laid off staff in its communications and corporate responsibility teams, further underscoring the shift towards stricter performance management and workforce reduction strategies. With approximately 228,000 full-time employees as of June 2023, Microsoft is not alone in this move, serving as a stark reminder of the ever-evolving landscape of the tech industry.
The news raises eyebrows among industry experts, who are watching with bated breath to see how Microsoft's new strategy unfolds and whether other major tech companies will follow suit.