The document summarizes Microsoft's practices around employee separation, including voluntary resignation, voluntary separation packages, and involuntary layoffs. It discusses former CEO Steve Ballmer's resignation in 2014 to focus on owning the LA Clippers basketball team. It also details Microsoft's large layoffs in 2009 and 2014 that impacted over 18,000 employees, including 12,500 from the recently acquired Nokia division. The document examines the impact of layoffs on remaining employees and Microsoft's share price, which increased under new CEO Satya Nadella following the job cuts.

1. PRESENTATION ON
SEPARATION MANAGEMENT IN
MICROSOFT
BY GARIMA GOEL
M.COM SEM IV

2. CONTENTS
• Separation management
• Resignation
• Voluntary Separation packages
• Lay offs
• Employees experience
• Effect on share price of Microsoft

3. SEPARATION MANAGEMENT
• Employee Separation is the process of
ensuring that an employee who quits the
company is exited in a structured and orderly
manner. Employee
Separation
Voluntary Involuntary

4. MICROSOFT SEPARATION PRACTICES
Voluntary
Resignation
Voluntary
Separation
packages
Involuntary
Lay offs
(Acquisition of
Nokia)

5. RESIGNATION
• Employee leaves his job and employment with his employer to pursue
better opportunities.
• In Microsoft, Steve Ballmer, Former CEO,resigned after 14 years of service
(2000-2014).
• Reason- his duty as a basketball team owner of
Los Angeles Clippers .
• Mr. Ballmer's term on the board was slated to
expire in late fall but he volunteered to leave
early.
• Mr. Ballmer's current holdings amount to about
4% of Microsoft's total shares, valued at
$15.1 billion.
• His stock holdings were boosted by more
than $4billion- two times more than what he paid for his team.

6. Continued…
• In his resignation letter, Mr. Ballmer indicated
that he wouldn't completely cut himself off
from his former company. "Count on me to
keep ideas and inputs flowing," Mr. Ballmer
wrote. "I bleed Microsoft—I have for 34 years
and I always will."
• His resignation was carried out in a structured
manner without tarnishing company’s image.

7. VOLUNTARY SEPARATION PACKAGE
• In 2009,Rafael Rollan,
managing director of
Microsoft Philippines,
announced that he will quit
his job and take advantage
of voluntary exit package.
• It was quite ironic since
Rollan was part of the
committee that evaluated
the applications of the
employees who wanted to
be included in the VSP
program.

8. • Offer included
• It was too tempting for Rollan to pass up he was wary he
might be hit by the redundancy program if he gave the VSP
a miss. If that was the case, he would have received a
smaller severance pay.
• Apart from Rollan, other top executives of Microsoft
Philippines also requested for the exit package though
none has publicly acknowledged doing so.
Three months worth of salary for every year of service
A month's salary upon notice of termination

9. LAY OFFS
• In 2009, Management eliminated 5,800
positions over the course of two-plus rounds.
Then-CEO Steve Ballmer attributed the cuts to a
"response to the global economic downturn."
2009
• On 17 July, 2014, CEO Satya Nadella announced
about laying off 18,000 jobs over the next
year, including about 12,500 associated with
the Nokia Devices
2014
• Microsoft is planning to cut 9000 jobs by
shutting down two manufacturing plants in
Beijing and Dongguan,China. This news has not
been officially announced.
2015

10. Largest lay off
First Round in July- 13000 employees laid off
• 12500 employees from Nokia after its acquisition
• Layoffs targeted Microsoft’s research unit, the Trustworthy
Computing privacy and cyber security group, Xbox and MSN, as
well as a broad range of engineering and marketing roles.
Second Round in September
• 2100 employees laid off
• Occurred across the board in "many different teams, functions and
countries,
Third Round in October
• 2900 employees laid off
• Cuts mostly came from human resources, finance, sales and
marketing and IT.

11. EMPLOYEE EXPERIENCE
• Undoubtedly, layoffs leave a sour taste in
employees’ mouth. They are provided with
severance pay and other benefits. But an
employee who has given his life to Microsoft
felt betrayed.
• Worst affected were Nokia employees
who were laid off after its acquisition.

12. A TALE TO TELL
• He was the victim of layoffs. He gave
15 years of his life to Microsoft and
blamed that it was an algorithm that
got him fired. He, particularly, praised
company’s insurance policy which
helped him in providing a normal life
to his autistic child.
• Now, he has decided to become
independent by developing his own
game. He has his YouTube channel by
name of ‘barnacules nerdgasm’
followed by 405k subscribers.

13. EFFECT ON SHARE PRICE
• Shares of Microsoft have taken off since Satya
Nadella was named CEO, and after unprecedented
layoffs news and former and current leaders are
benefiting handsomely.
• Steve Ballmer, who stepped down as CEO on Feb.
3, now is $2.8 billion richer thanks to a 23 percent
increase in share values since the day he left the
company. That puts his entire portfolio value at
$14.9 billion.
• Investors have taken a liking to Nadella’s strategies
for Microsoft. He soon will have the corporation
focusing more on cloud and mobility. That tactic is
making shareholders happy, as are the record
number of job cuts Nadella is implementing.
Investors have boosted Microsoft’s stock prices
almost 6 percent in one week.

14. CONCLUSION
• With share prices of Microsoft soaring after
layoffs justifies the efficiency of separation
management. It was handled properly
otherwise it could have resulted in a disaster
and brought ignominy to the new CEO, Satya
Nadella.

15. THANK YOU!  