• Microsoft introduced a two-year rehire ban for employees laid off due to poor performance or placed on performance improvement plans (PIPs).
• Employees flagged for low productivity may be offered a year-long PIP or the option to leave through a voluntary severance package.
• Those with performance scores between 0–60% are ineligible for internal transfers and face stricter compensation limits.
• The company is also rolling out AI-based tools and clearer compensation guidelines to help managers handle low performance more effectively.
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