Microsoft’s latest move is raising eyebrows.
Underperforming staff are now given a choice — and just five days to make it:
✅ Take 16 weeks’ pay and resign
or
✅ Go on a formal Performance Improvement Plan (PIP)
If you choose the PIP and fail?
You’re shown the door — with no payout.
Earlier this year, Microsoft said goodbye to 2,000 underperforming staff. But without any severance pay. Their new policy is about tackling poor performance head on.
It’s blunt. Deliberate. Aggressive, even. But not entirely unique.
Amazon has its controversial “Pivot” program.
Meta and Google are also tightening up how they handle underperformers.
Big Tech is upping the layoffs and clearly shifting hard towards a “raise the bar or hit the road” approach. With the onus put firmly on the individual — the dating world equivalent of, “It’s not me, it’s you.”
From a business point of view, I get it.
Leaders want to keep standards high.
Deadweight kills momentum.
And yes — not everyone should stay.
But as someone who works with managers every week, I can’t help but ask:
👉 Is this really the best we’ve got?
What about coaching?
What about honest conversations before we take staff to the PIP cliff edge?
What about a culture where it’s safe to say “I’m struggling” without triggering your own exit?
Do we need to hold people to account?
Absolutely.
But if the only tools in our kit are carrots and sticks – now called Payouts & PIPs – maybe we’re missing the point of leadership.
👇
Want help building a culture where performance is lifted through better coaching, not ultimatums?
I help managers turn tough conversations into turning points.
Let’s talk 📞 Before the 5-day clock starts ticking ⏳
