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Reddit
reddit.com › r/layoffs › microsoft denying severance to long-time employees using “performance-based” loophole
r/Layoffs on Reddit: Microsoft denying severance to long-time employees using “performance-based” loophole
April 2, 2025 -

UPDATE: Based on the volume of responses, here’s a quick list of what to do if you believe your severance was wrongfully denied: • File a complaint with WA State Labor & Industries • Appeal to Microsoft’s Severance Plan Administrator • You are not alone - this is happening to others with no documented performance issues (Full details and how to are in the comments below, or message me if you need help)

I was recently laid off from Microsoft after 5 years, and like others, I didn’t get severance. No formal LITE designation or performance plan, no misconduct. Just a “performance-based” termination, even though my most recent review was strong and I received a bonus last fall.

What I’ve learned since is that Microsoft is denying severance to anyone who’s ever had the LITE box checked, even if it was removed later and performance improved. It’s not about how you’re doing now. It’s whether they can point to something in your past and use that to save money.

If this happened to you (or someone you know), you can file a complaint with Washington State’s Labor & Industries department. They’re seeing more of these and are starting to notice the pattern.

Here’s how to file: 1. Go to: https://secure.lni.wa.gov/wagecomplaint/#/ 2. Select “Willful failure to pay agreed wages” and anything else that applies to your situation 3. Say you were denied severance despite recent solid performance 4. Estimate what you were owed (Microsoft gives 1 week per 6 months of service) 5. Attach docs like your termination letter, reviews, severance policy, or appeal (if you have them)

It’s free, takes 20–30 mins, and adds to the case. If enough of us speak up, they’ll have to respond.

Happy to answer questions in the comments or DMs.

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Stablerwealthmanagement
stablerwealthmanagement.com › microsoft-layoffs-gameplan
Impacted by Microsoft Layoffs- Your Financial Gameplan
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Discussions

Microsoft layoffs part II, severance packages & the WARN - Bogleheads.org
The severance paperwork clearly states that you lose your severance package if you're offered a comparable position by "Microsoft or a subsidiary," but it strikes me as odd that they would penalize people in the process of moving on to their next non-Microsoft job. Anonymous said... Being one of the first rounders a few months ago, I became painfully aware of a despicable "catch" in the 60-day WARN policy. If you are notified today of your layoff ... More on bogleheads.org
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monkhouselaw.com › home › microsoft layoffs: understanding your employment rights
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coldstream.com › home › insights › company benefits › your microsoft layoff roadmap: seven smart financial steps to take now
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May 27, 2025 - Here are seven smart financial steps to take if you’ve recently been laid off from Microsoft: Severance Pay: Review your severance package carefully. Microsoft typically offers a lump sum based on tenure. Understand the tax implications and ...
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microsoftalumni.com
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economictimes.indiatimes.com › business news › news › international › global trends
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