Microsoft Uses Layoffs to Push Underperforming Employees Out … – Business Insider

As Microsoft plans 10,000 layoffs, the company is also shaking up how it deals with underperforming employees in at least some parts of the company, according to a high-level source who was briefed on the plans. 
Some managers were asked to identify employees for exits who would otherwise be put on performance coaching. Previously, managers contacted Microsoft’s internal human resources system AskHR to start a consultation on an employee’s performance, and it would typically take as long as six months of performance management before the manager could exit the staffer.
Now, if HR agrees the employee has concerning performance, they’ll consider laying off the employee without performance coaching, according to this person. They asked not to be identified discussing sensitive matters.
Microsoft spokesman Frank X. Shaw said performance-based exits might be something a team or manager is doing but is not a companywide guidance or strategy.
Some managers have been asked to nominate employees for exits in January, February, and March, the person said. That timing aligns with Microsoft’s stated plans to cut employees through its fiscal third quarter, which ends in March. 
The layoffs will help Microsoft accelerate performance management for employees the company deems “good attrition,” the internal term used to describe an employee who leaves as a result of a performance management plan or terminated for bad conduct.
In an email to employees announcing the layoff plans, Nadella wrote “every one of us and every team across the company must raise the bar and perform better than the competition.”
Are you a Microsoft employee or do you have insight to share? Contact reporter Ashley Stewart via the encrypted messaging app Signal (+1-425-344-8242) or email ([email protected]).
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