Microsoft has updated its policy, and now those who have been fired will no longer be able to re-enter the company for at least two years.
The company recorded the decision in an internal letter sent to managers by Amy Coleman, the new head of HR. Thus, the company’s performance management policy stipulates that employees who have been fired for poor performance will not be welcomed back for some time.
New tools for managers should help them identify weaknesses in their teams faster. Specifically, managers can use the global Performance Improvement Plan (PIP). If an employee fails to meet expectations, they are offered the opportunity to either correct the situation within a certain period of time or leave Microsoft under a voluntary separation agreement (GVSA).
«These tools will also help foster a culture of accountability and growth by enabling you to address performance challenges with clarity and empathy», — Amy Coleman said in the letter.
If an employee is fired after an unsuccessful PIP or voluntarily leaves the company during this procedure, he or she is subject to the new rule. Namely, for the next two years, such a person is not eligible for reemployment at Microsoft or for transfer to other internal departments.
This is not an isolated case of a tougher approach to ineffective employees in the tech industry. A similar policy has already been implemented by Meta: its former employees can be put on «blacklists» and are not eligible for rehire. But the situation there is worse because the scheme is not understood by top manager Meta. At the beginning of this year, Meta laid off thousands of people precisely because of performance issues.
Microsoft also did not stand aside, for example, in 2025 the company fired 2000 employees without compensation who were deemed insufficiently effective. According to insider sources, managers spent months evaluating employees at all levels — up to and including executives — as part of a new approach to performance reviews.
Microsoft uses a proprietary performance appraisal system on a scale from 0 to 200. «Employees with remuneration from zero to 60%» — are those who received the lowest scores and, accordingly, lost part of their bonuses or bonuses. This category of people now has no chance of returning to the company in the coming years.
In addition to the restrictions, Microsoft is also launching new tools for managers: AI-based scenario simulators for training difficult conversations, training on reward differentiation, and clearer rules on what «significant impact» means in work. The company promises a more transparent payment process and a new bonus grid by the end of the month.
Source: Business Insider
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