Microsoft Corp. (NASDAQ:MSFT) is reportedly implementing new performance management policies, including a two-year rehire ban for underperforming employees.

What Happened: The company's chief people officer, Amy Coleman, informed managers about new tools to accelerate high performance and quickly address low performance, reported Business Insider on Tuesday, citing an internal email.

A key change includes a policy that bars employees with poor performance scores from transferring within the company or being rehired for two years after their departure.

“Employees with zero and 60% Rewards outcomes and/or on an active PIP will not be eligible for internal transfers. Former employees who left with zero or 60% Rewards or during/after a PIP will not be eligible for rehire until two years after their termination date,” the email read.

Coleman's email also highlighted the importance of creating a transparent rewards process, with clearer guidelines for differentiating reward outcomes, the report said.

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However, many affected Meta employees pushed back on the claim in public forums, asserting that they had no prior record of underperformance.

Last year, Barclays PLC (NYSE:BCS) also reportedly laid off hundreds of employees in its investment banking division as part of an effort to remove underperformers.

Price Action: Microsoft shares rose 0.89% in Tuesday's pre-market session. However, year-to-date, the stock has declined by 14.21%, according to Benzinga Pro.

The company currently holds a growth score of 64.64% based on Benzinga Edge Stock Rankings. Click here to compare it with other players in the sector.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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