In a surprising move, Microsoft has introduced a bold new policy aimed at low-performing employees: accept a payout for quitting or face the possibility of termination through a performance improvement plan (PIP).

An internal memo, shared with managers last Friday, outlined the company's new "globally consistent" PIP, emphasizing clear expectations and a structured timeline for employees to enhance their performance.

Those identified as low performers now have the option to enter this PIP or opt for a "Global Voluntary Separation Agreement (GVSA)"—a decision they must make within five days, as indicated in the memo reviewed by Business Insider.

If they choose the PIP, the monetary payout, reportedly equivalent to 16 weeks' pay, becomes unavailable. The initiative is touted as a transparent way to tackle performance issues while providing employees with an alternative.

This shift marks Microsoft’s alignment with Amazon's well-known Pivot program, which similarly offers a choice between a PIP and a financial incentive to exit the company. Amazon’s program has drawn criticism for allegedly prioritizing firing over genuine employee development.

The dynamics of this new PIP may vary in international markets due to differing legal frameworks, leaving Microsoft’s specific execution open to interpretation outside the U.S.

As tech giants tighten their performance standards, Microsoft is joining the trend of fostering a high-performance culture with less room for leniency. Earlier this year, the company took a drastic approach by laying off 2,000 employees labeled as underperformers without providing severance packages.

Now, some departments are contemplating even more aggressive performance cuts, potentially eliminating middle management positions and reevaluating staff roles to favor technical talent over non-technical roles. With these changes, Microsoft is definitely signaling a new era of accountability and performance-driven decisions.