Latest news with #GlobalVoluntarySeparationAgreement
India Today
14-05-2025
- Business
- India Today
Tech jobs getting tougher? Microsoft not just firing over 6000, it is also changing its rehiring policy
Microsoft has announced a massive 3 percent cut in headcount, which amounts to a total of 6,000 employees in line to get the dreaded pink slip over the coming days, even as Redmond moves to increase operational efficiency by realigning resources to a workforce involved in core engineering rather than people who manage them. This is now the second-biggest round of firings in the history of the company responsible for consumer-facing products like Windows and enterprise solutions like Azure. But these layoffs are not the only internal changes the company is apparently making. Microsoft is reportedly going through several sweeping changes, including – and not limited to – policy vis--vis while on the one hand, Microsoft is laying off a huge chunk of its global workforce, it is also making it difficult for some of these people to come back. According to reports, the company has recently enforced a two-year rehire ban for employees who are fired due to performance-related issues. Microsoft is calling it 'good attrition', per Business Insider, which claims to have seen internal – and presumably secret – documents that speak of these purported changes. In layman terms, what this means is that Microsoft wants these people to leave and is happy when they do. The strategy appears to echo the situation at rival company Amazon, which has its own 'unregretted attrition' metric as a firm and solid – but controversial – move to crackdown on underperformers. So, the company putting in place a system to not take these people back within two years' time seems reasonable, some might say. The only caveat is that, given Microsoft's scope and scale, other companies might also start to is reportedly giving these so-called underperforming employees two options at the time of writing. They can voluntarily choose to be put on PIP (short for performance improvement plan), in which case they'll be given a timeline with clear expectations for improvement. Otherwise, they can quit by accepting a 'Global Voluntary Separation Agreement.' They will be eligible for 16 weeks of severance pay, per the report, while those who opt for PIP will not get it, plus they can't also avail any internal job transfers within Microsoft. Things are clearly moving fast, much in the same way as AI, which, for better or for worse, is the primary reason why a lot of these changes are happening. There is enough evidence that AI advancements will need time to become profitable. Right now, it seems all about making investments. Some are good, some might have risks and so, companies like Microsoft are switching gears to focus on hires that they think would bring them the most return. They are working to reduce what is called the 'PM ratio', which is the proportion of managers to engineers across to an official statement from Microsoft, these 'organisational changes [are] necessary to best position the company for success in a dynamic marketplace.'
Time of India
13-05-2025
- Business
- Time of India
Microsoft's second biggest layoffs ever hits over 6,000 employees; these are the positions likely to be impacted
Microsoft has announced that it will lay off 3% of its global workforce, affecting thousands of employees across all levels, teams, and geographies, amounting to over 6,000 employees. The cuts at the Redmond giant, which employed 228,000 people as of last June, aim to reduce management layers and streamline operations. "We continue to implement organizational changes necessary to best position the company for success in a dynamic marketplace," a Microsoft spokesperson told CNBC in a statement. This represents Microsoft's largest reduction since eliminating 10,000 roles in 2023. Unlike January's smaller performance-based cuts, the company indicated these layoffs are structural in nature. Layoffs to impact management staff; coders and engineering employees may stay safe These cuts may particularly impact middle management roles, as the company seeks to create a more streamlined hierarchy by increasing each manager's "span of control." Microsoft, as reported by Business Insider previously, aims to prioritize engineering talent as it continues investing heavily in artificial intelligence initiatives. Poll Should Microsoft prioritize engineering talent over other roles? No, all roles are equally important. Yes, it's crucial for AI development. Sources told Business Insider that laid off employees will stay on the payroll for the 60 days after their termination. Further, the affected staff will also be reportedly eligible for rewards and bonuses. Microsoft has introduced new rehire ban and performance management overhaul The workforce reduction comes amid significant changes to Microsoft's performance management system. According to internal documents viewed by Business Insider, the company has implemented a two-year rehire ban for employees forced out due to performance issues. Microsoft has also introduced a "good attrition" metric to track desirable employee departures. This approach mirrors Amazon's controversial "unregretted attrition" system and signals Microsoft's intent to more aggressively manage underperforming staff. Under the new system, employees facing performance issues must either enter a performance improvement plan (PIP) with "clear expectations and a timeline for improvement" or accept a "Global Voluntary Separation Agreement" with 16 weeks of severance pay. Those who choose the PIP path have just five days to decide and will no longer be eligible for the severance package if they opt for the improvement plan. Managment roles are being cut across the industry as tech giants push for efficiency Microsoft's restructuring reflects a broader trend across the tech industry toward flatter organizational structures and higher engineering efficiency. The company is reportedly focusing on reducing its "PM ratio" — the proportion of managers to engineers — across teams. Similar strategies have been implemented at other tech giants, including Amazon and Google, where the top layer of the hierarchy were let go. Meta is also expected to let go off several thousand employees this year, as CEO Mark Zuckerberg pushes for a 'year of efficiency.' The layoffs follow Microsoft's better-than-expected quarterly results reported in April, when CEO Satya Nadella indicated the company would make sales execution changes after lower-than-expected growth in non-AI Azure cloud revenue. AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Time of India
13-05-2025
- Business
- Time of India
Microsoft announces second-biggest job cuts in its history: We continue to …
Microsoft has announced that it will lay off 3% of its global workforce, affecting thousands of employees across all levels, teams, and geographies, amounting to about 7,000 employees. The cuts at the Redmond giant, which employed 228,000 people as of last June, aim to reduce management layers and streamline operations. "We continue to implement organizational changes necessary to best position the company for success in a dynamic marketplace," a Microsoft spokesperson told CNBC in a statement. This represents Microsoft's largest reduction since eliminating 10,000 roles in 2023. Unlike January's smaller performance-based cuts, the company indicated these layoffs are structural in nature. These cuts may particularly impact middle management roles, as the company seeks to create a more streamlined hierarchy by increasing each manager's "span of control." Microsoft, as reported by Business Insider previously, aims to prioritize engineering talent as it continues investing heavily in artificial intelligence initiatives. Microsoft has introduced new rehire ban and performance management overhaul The workforce reduction comes amid significant changes to Microsoft's performance management system. According to internal documents viewed by Business Insider, the company has implemented a two-year rehire ban for employees forced out due to performance issues. Microsoft has also introduced a "good attrition" metric to track desirable employee departures. This approach mirrors Amazon's controversial "unregretted attrition" system and signals Microsoft's intent to more aggressively manage underperforming staff. Under the new system, employees facing performance issues must either enter a performance improvement plan (PIP) with "clear expectations and a timeline for improvement" or accept a "Global Voluntary Separation Agreement" with 16 weeks of severance pay. Those who choose the PIP path have just five days to decide and will no longer be eligible for the severance package if they opt for the improvement plan. Tech sector sees industry-wide efficiency push Microsoft's restructuring reflects a broader trend across the tech industry toward flatter organizational structures and higher engineering efficiency. The company is reportedly focusing on reducing its "PM ratio" — the proportion of managers to engineers — across teams. Similar strategies have been implemented at other tech giants, including Amazon and Google, where the top layer of the hierarchy were let go. Meta is also expected to let go off several thousand employees this year, as CEO Mark Zuckerberg pushes for a 'year of efficiency.' The layoffs follow Microsoft's better-than-expected quarterly results reported in April, when CEO Satya Nadella indicated the company would make sales execution changes after lower-than-expected growth in non-AI Azure cloud revenue. AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Time of India
13-05-2025
- Business
- Time of India
Microsoft is getting tougher on employees, and this 'ban' is proof
Microsoft CEO Satya Nadella Microsoft has implemented a new two-year rehire ban for employees forced out due to performance issues, signaling a significant shift in the company's approach to workforce management. According to internal documents viewed by Business Insider, the tech giant is also categorizing these departures as " good attrition ,"essentially labeling certain employee exits as beneficial for the company. This policy shift indicates Microsoft is deliberately tightening its internal standards, implementing formal mechanisms to prevent the return of employees whose performance didn't meet expectations, something the company had historically approached with more flexibility. "Good attrition" metric tracks desirable employee departures The newly introduced "good attrition" metric, similar to Amazon's controversial "unregretted attrition" approach, allows Microsoft to track and even celebrate the departure of employees it's happy to see leave. Business Insider reports that while specific targets for this metric haven't been established, it's already being reviewed at the executive level. This approach signals Microsoft's intent to more aggressively manage out underperformers while preventing their return to the company—a strategy that aligns with Meta's practice of maintaining internal "do not rehire" lists. Microsoft revamps performance management system Microsoft is fundamentally restructuring its approach to performance management. Earlier this year, the company terminated 2,000 employees deemed underperformers without severance and implemented a new performance improvement plan (PIP) with what internal documents describe as "globally consistent" standards featuring "clear expectations and a timeline for improvement." According to Business Insider's reporting, Microsoft employees facing performance issues now face a stark choice: enter the company's PIP program or accept a "Global Voluntary Separation Agreement" that includes a payout equal to 16 weeks of salary. These changes mark a significant departure from Microsoft's previous management philosophy under CEO Satya Nadella , suggesting the company is moving away from its more employee-friendly reputation as it intensifies focus on efficiency and high performance metrics, similar to its industry peers, like Amazon and Meta. AI Masterclass for Students. Upskill Young Ones Today!– Join Now
NDTV
08-05-2025
- Business
- NDTV
Microsoft Implements 2-Year Rehire Ban For Underperforming Ex-Employees: Report
Quick Reads Summary is AI generated, newsroom reviewed. Microsoft has a new two-year rehire ban on underperforming employees now. This policy categorizes such dismissals as good attrition to enhance efficiency. The tech industry is moving toward stricter performance management policies. Microsoft has implemented a stringent performance management policy, introducing a two-year rehire ban for employees dismissed due to underperformance, according to a report by Business Insider. These terminations are categorised as "good attrition", reflecting the company's intent to part ways with employees not meeting performance standards. This move aligns with a broader industry trend among tech giants like Meta and Amazon, which have adopted similar strategies to enhance workforce efficiency. The company has also introduced a Performance Improvement Plan (PIP), offering employees a choice between engaging in a structured improvement process or accepting a voluntary separation package. Employees opting for the PIP and failing to meet expectations face termination and the subsequent two-year rehire ban. These measures are part of Microsoft's efforts to foster a high-performance culture, emphasising accountability and aligning with its strategic goals in artificial intelligence and cloud services. The company aims to ensure that its workforce comprises high-performing individuals capable of driving innovation and maintaining a competitive advantage in the tech industry. According to a Business Insider report, overall, the industry is shifting toward more rigorous performance expectations and less coddling. Performance-based cuts are becoming more common as tech companies get tougher on employees. Earlier this year, Microsoft fired 2,000 employees deemed underperformers without severance and started a new performance improvement plan. A recent internal email sent to Microsoft managers, viewed by BI, said this new plan was "globally consistent" with "clear expectations and a timeline for improvement". The process gives employees an option to enter the PIP or quit and accept a "Global Voluntary Separation Agreement", according to another email that BI viewed. Another document, also viewed by BI, shows the agreement includes a payout equal to 16 weeks' pay.
