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Microsoft's performance-based job cuts have started, according to termination letters sent to staff

1. Microsoft initiated performance-based job cuts affecting some employees immediately. 2. Job losses lead to immediate termination of healthcare benefits without severance. 3. Performance management evaluations have intensified across various departments at Microsoft. 4. Layoffs include roles in Security, Experiences and Devices, sales, and gaming. 5. Spokesperson confirms that high performance is prioritized, impacting future employment evaluations.

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FAQ

Why Neutral?

Job cuts may save costs, but performance-focused layoffs can disrupt morale. Historically, such actions have led to short-term stock uncertainties but may stabilize long-term.

How important is it?

While not a significant market-moving event, it reflects Microsoft's strategy and management approach.

Why Short Term?

Immediate effects on employee morale and performance; could influence quarterly performance review outcomes.

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