Microsoft has implemented a two-year rehire ban impacting anyone anyone fired from the company for performance issues, chalking the losses up to “good attrition.”
Like many tech companies, Microsoft is trying to establish a new equilibrium post-pandemic. During the pandemic, many companies over-hired, leading to personnel redundancy, as well as underperforming employees. Post-pandemic, companies have engaged in mass layoffs in an effort to boost efficiency.
According to Business Insider, Microsoft is taking things a step further with a two-year rehire ban on any employees that have been ousted over performance issues. As the outlet points out, Microsoft fired 2,000 employees earlier this year for being underperformers. The fired employees received no severance.
Microsoft is labeling the losses “good attrition.” Companies often use attrition to reduce headcount. In mid-2022, for example, Amazon used “unregretted attrition” to reduce its headcount by 100,000 over fears of an upcoming recession. In contrast, later that year, reports surfaced that Amazon’s “regretted attrition” was costing the company $8 billion per year.