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31 January 2025

Microsoft And Amazon Rely On Performance Reviews For Layoffs

Tech giants are assessing employee contributions amid rising job insecurity.

Microsoft and Amazon are facing scrutiny as they navigate new rounds of layoffs, increasingly relying on employee performance metrics to determine who stays and who goes. This turn toward performance evaluations raises significant concerns about job security across the tech industry, stirring discussion among career professionals about the factors influencing these decisions.

Recently, Microsoft, the $3.1 trillion technology giant, confirmed its intent to proceed with layoffs, indicating it would be closely assessing underperforming employees. While the company has not disclosed how many positions will be cut, the commitment to focus on performance metrics is clear. According to Business Insider, Microsoft is not alone; Amazon has also made significant layoffs, with more than 27,000 workers let go during 2022 and 2023, using performance improvement plans (PIPs) as part of their strategy.

Experts are warning employees about certain behaviors and red flags which may increase their risk of termination during periods of workforce reductions. One of the most significant indicators of possible job cuts is failing to meet the performance goals set by employers. Gabrielle Davis, a career expert from Indeed, noted, “There are certain red flags or mistakes... consistent underperformance and missed KPIs, lack of effort or engagement... can all have the potential to put an employee at risk.” This highlights the importance of hitting key performance indicators (KPIs) consistently.

But the criteria for performance can be quite complex. According to Davis, additional behaviors, such as being disengaged or resistant to change, can also significantly impact job security. “Employees who strive to be reliable, value-driven, adaptable, and positive influences... have the best bet of safeguarding their careers during times of uncertainty,” she explains.

Keith Spencer, another career expert at ResumeNow, echoed these sentiments, pointing out several other detrimental behaviors. “Missing deadlines, delivering subpar work, and openly criticizing colleagues are major missteps,” said Spencer, emphasizing the overall perception of employees within companies. He noted, “Failing to advocate for oneself can make it really easier for the management to overlook the value of an individual during workforce reductions,” indicating the need for employees to actively promote their achievements.

It’s not just about completing tasks; the method of communication and attitude toward feedback also play pivotal roles. Employers may overlook hardworking individuals who do not communicate their contributions effectively or maintain open channels of dialogue with management.

This focus on performance-driven layoffs mirrors strategies employed by other major tech companies, creating an environment where employees are encouraged to continuously evaluate their performance and contributions to the organization. Both Davis and Spencer suggest proactive engagement and self-evaluation as methods to safeguard job security. It’s about making oneself visible and demonstrating adaptability to change.

With both Microsoft and Amazon setting the precedent for evaluating employees based on metrics, the broader workforce is on high alert. Individuals are at risk if they become complacent or unaware of the changing expectations within their companies.

The mixed signal of needing to prepare for potential job cuts, even amid traditional avenues for career growth, has led to increased anxiety among workers. Career experts recommend maintaining positive workplace relationships, embracing change, and seeking regular feedback from management as proactive strategies.

During these uncertain times, it may be beneficial for employees to hold frequent self-assessments, keeping track of their successes and continuously seeking advancement opportunities. Striving to cultivate personal agency over one’s job role will become increasingly significant as layoffs continue to impact thousands.

Action from employees should focus on demonstrating undeniable value to their teams and companies. Clear, consistent communication coupled with visible engagement can safeguard against the poorly defined notion of performance metrics becoming subjective during layoffs.

By being mindful of these strategies and addressing potential pitfalls, employees at Microsoft and Amazon, and other companies facing similar challenges, can navigate through uncertain employment waters with greater confidence. Those who proactively work to manage their reputations and contributions stand the best chance of preserving their positions.

With performance-related layoffs expected to persist as common practice, the emphasis lies on the individual’s responsibility to adapt and maintain clear communication with their managers, ensuring they remain indispensable members of their workforce.