Microsoft rolling out ‘new and enhanced tools’ to cull low performers

What’s going on at Microsoft?

Microsoft is rolling out “new and enhanced tools” to help managers “swiftly address low performance.”

Key takeaways from a recent memo sent by the Amy Coleman, the tech giant’s chief people officer, include:

• A new “Rewards” system designed to help managers make decisions that align with Microsoft’s high-performance expectations.
• Giving low performers the option to participate in a Performance Improvement Plan (PIP) or accept a voluntary severance package.
• Staff with zero or 60 per cent “Rewards outcomes” (or are actively participating in a PIP) will not be eligible for internal transfers.
• Workers who leave the company with zero or 60 per cent “Rewards outcomes” will face a two-year rehire ban.

WATCH: Employment lawyer Lior Samfiru breaks down everything you need to know about PIPs on an episode of the Employment Law Show.

“Our goal is to create a globally consistent and transparent experience for employees and managers (subject to local laws and consultation),” Coleman said in the memo.

“These tools will also help foster a culture of accountability and growth by enabling you to address performance challenges with clarity and empathy.”

SEE ALSO
• Microsoft trims several teams in January, separate from performance cuts
• Can I be fired after a bad performance review in Ontario?
• What Albertans need to do if they’re fired after a bad performance review
• Fired after a bad performance review in B.C.: Employee rights

Should I accept a voluntary severance package?

Non-unionized employees in Canada shouldn’t accept a voluntary severance package before speaking with an experienced employment lawyer at Samfiru Tumarkin LLP.

This includes individuals working full-time, part-time, or hourly in Ontario, Alberta, and British Columbia (B.C.).

In some cases, individuals could be owed far more compensation if they’re fired by the company — or let go involuntarily.

No shortage of job cuts

Microsoft’s latest crackdown on low performers comes amid a flurry of workforce reductions in 2025.

Big names, including Google, Alstom, S&S Activewear, Siemens, HPE, Wayfair, MLSE, Disney, Autodesk, JPMorgan, Vale, Canada Post, Workday, ADM, Amazon, and Shopify, have pulled out the axe as they navigate challenging economic conditions.

SEE ALSO
• Estée Lauder reportedly cut all Canadian staff in Hudson’s Bay stores
• Canada’s immigration department slashing workforce by 25%
• Where are layoffs happening in Canada?

Workplace issue? Contact us

Since 2007, the experienced employment law team at Samfiru Tumarkin LLP has helped tens of thousands of non-unionized individuals resolve their workplace issues.

Whether you’re in Ontario, Alberta, or B.C., our lawyers can review your situation, enforce your rights, and ensure you receive the compensation you deserve.

Call us today at 1-855-821-5900 or request a consultation online.

Disclaimer: The materials above are provided as general information about the rights of non-unionized employees in Canada. It is not specific to any one company and SHOULD NOT be read as suggesting any improper conduct on the part of any specific employer, or a relationship between Samfiru Tumarkin LLP and a specific employer.