Overview

• Microsoft's new Global Voluntary Separation Agreement (GVSA) offers low-performing employees 16 weeks of severance pay as an alternative to a performance improvement plan (PIP).
• Employees have five days to decide between the severance payout or committing to meet performance targets under the PIP.
• Those who exit through GVSA or fail during a PIP face a two-year ban on rehire at Microsoft and are prohibited from transferring to other internal roles.
• The policy, announced on April 21, aims to enforce accountability and create a globally consistent performance management process, with adjustments for local labor laws.
• The initiative mirrors Amazon’s controversial Pivot program, emphasizing cost control and high performance, while drawing criticism for its perceived focus on termination over employee development.