Microsoft has rolled out stricter performance management policies that could make it harder for low-scoring employees to remain with or return to the company, according to a recent report by Business Insider. In an internal email, Chief People Officer Amy Coleman outlined new measures designed to streamline accountability, including a two-year rehire ban for employees who exit due to poor performance, states the report. 

As per Business Insider, Microsoft's updated employee guidelines introduce a clearer distinction between high and low performers, particularly in reward allocations. Employees who fall in the bottom 60% of performance ratings will no longer be eligible for internal transfers, effectively limiting their career mobility within Microsoft. Those placed on formal improvement plans will face a structured timeline to meet targets or leave under a newly introduced 'Global Voluntary Separation Agreement (GVSA)', i.e. a voluntary exit option with undisclosed terms.  

The changes follow broader industry trends as tech companies prioritize efficiency after years of rapid expansion. Earlier this year, Microsoft reportedly cut around 2,000 underperforming employees without severance, part of a sweeping review that even assessed senior leadership, as per an earlier Business Insider report. Now, the company is doubling down on performance transparency, equipping managers with new evaluation tools and AI-powered training to handle difficult feedback conversations.  

While Microsoft hasn't publicly commented on these new policies, internal documents suggest the policies aim to foster a more "meritocratic" culture, rewarding top contributors while swiftly addressing stagnation. Whether this approach improves morale or fuels attrition remains to be seen, but one thing is clear: in today's competitive tech landscape, even Microsoft is no longer offering unlimited second chances.