Microsoft pivots toward Amazon’s way of handling low performers — by paying them to leave – Business Insider
2025-04-23T17:26:00Z
Microsoft’s new performance improvement plan includes an option for employees to get paid to quit. It’s similar to Amazon’s infamous Pivot program.
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Microsoft is offering a new choice to employees who are deemed low performers: Accept a payout to quit or risk termination on a performance improvement plan.
An internal email sent to Microsoft managers on Friday disclosed the company’s new “globally consistent” performance improvement plan with “clear expectations and a timeline for improvement.”
Affected employees can enter the PIP or quit and accept a “Global Voluntary Separation Agreement (GVSA),” according to the email, which Business Insider viewed.
“This performance improvement process is available year-round so you can act quickly to transparently address performance issues, while offering employees choice,” said the email, which was from Amy Coleman, Microsoft’s new chief people officer .
Another internal Microsoft document viewed by BI said that the payout to employees would be equal to 16 weeks of pay. Affected staff have five days to decide which option to take. If they choose to start the PIP, the payout is off the table, this internal document said.
The new PIP system may work differently outside the US, as other countries have different laws. Microsoft declined to comment.
Shades of Pivot
Microsoft’s approach is similar to Amazon’s Pivot program, which offers a PIP option or a payout if the employee leaves.
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BI has reported extensively on Pivot, a central cog in a broader Amazon performance review system that some employees have said is designed to meet firing quotas rather than revive careers.
Amazon has defended its system in the past. In 2021, the company told BI that it provided managers “with tools to help employees improve their performance and grow in their careers.” It added: “This includes resources for employees who are not meeting expectations and may require additional coaching.”
More PIP, less coddling
The latest changes come as Microsoft, and the tech industry overall, shifts toward more rigorous performance expectations and less coddling.
Earlier this year, Microsoft fired 2,000 employees deemed underperformers without severance.
Leaders in at least some parts of the company are considering additional performance-based cuts as soon as May. They’re looking at cutting middle managers and how to increase the ratio of coders versus noncoders on projects.
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