New Microsoft Policy Lets Low Performers Exit With 16-Week Pay

Microsoft Corp. has introduced a performance management program that lets employees identified as low performers leave with a severance payout rather than enter a performance improvement plan, according to documents reviewed by Business Insider.

Under the arrangement, staff who choose departure receive 16 weeks of pay. The framework, called the Global Voluntary Separation Agreement or GVSA, mirrors Amazon’s Pivot approach, which critics linked to firing quotas instead of employee support.

An April 22 memo from Chief People Officer Amy Coleman instructs managers to present the GVSA alongside a performance improvement plan (PIP). Each employee has five days to decide. Those who opt for the PIP lose access to the payout and must meet specified performance targets.

Employees who exit under GVSA or leave during a PIP face a two-year ban on rehire at Microsoft and cannot transfer to other roles within the company.

Earlier this year, Microsoft evaluated performance across all levels and laid off approximately 2,000 employees identified as low performers without offering severance. Coleman’s memo states the changes aim to create a process that applies in each region and support accountability. The PIP option will be available throughout the year, allowing managers to address performance issues as they arise while giving employees a choice between improvement targets and a severance package.