Microsoft is discontinuing its Perspectives peer feedback tool as part of a broader revamp of its performance management system.
Microsoft is phasing out its long-standing employee feedback tool, Perspectives, as the company continues to reshape its approach to performance evaluation and workplace development.
An internal HR message reviewed by Business Insider confirmed that the tool, which has been in use since 2018, is being retired as part of a comprehensive overhaul of Microsoft’s performance management strategy.
“The Perspectives tool is being retired,” the message stated. “Feedback remains an important part of our growth mindset, and we heard from employees and managers that feedback is most valuable when shared through ongoing, in-the-moment conversations rather than formal requests.”
Perspectives was introduced to integrate peer feedback into the workplace, making it a regular part of employee interactions rather than something solely tied to annual reviews. The platform allowed employees to request feedback directly from colleagues, with responses visible to both the employee and their manager.
Microsoft is not shutting down the tool immediately. While employees can no longer submit new feedback requests, they can still complete existing ones and download their feedback history until September 15, according to the internal communication.
This decision comes as Microsoft implements broader changes to its performance review process. The company has adopted a simplified five-level rating system and is placing greater emphasis on distinguishing employee performance. Additionally, managers have been instructed to reduce the number of employees in higher-level engineering positions as part of an effort to flatten the organization’s structure.
Together, these changes reflect a wider shift in the tech industry toward more rigorous performance expectations. With fewer senior-level opportunities, a more defined rating system, and the removal of a formal peer feedback platform, Microsoft is aligning itself with a workplace model that prioritizes continuous performance discussions over structured review tools.
The retirement of Perspectives follows another significant workforce announcement earlier this year. In May, Microsoft introduced its first voluntary retirement program for eligible U.S. employees, offering a package that includes healthcare benefits, cash severance, and additional stock vesting incentives.
This program is available to approximately 8,750 employees, which represents about 7 percent of Microsoft’s U.S. workforce. Eligibility is determined by adding an employee’s age to their years of service. Those whose combined total reaches at least 70 qualify for the offer and have 30 days to decide.
One of the most appealing aspects of the program is the healthcare coverage for employees who retire before becoming eligible for Medicare. Microsoft will cover medical, dental, vision, and well-being benefits for five years. The company will fully pay the costs during the first year, while retirees will be responsible for the monthly premiums during the remaining four years.
For employees leaving in their mid-50s, this extended healthcare coverage could help bridge the gap until Medicare eligibility at age 65, although the long-term cost will depend on the premiums Microsoft sets for those later years.
These developments indicate Microsoft’s ongoing commitment to adapting its workplace practices in response to employee feedback and the evolving landscape of the tech industry, according to Business Insider.