Microsoft (MSFT, Financials) is tightening its approach to employee performance, introducing new policies that make it harder for underperformers to stay or return to the company, according to an internal email viewed by Business Insider.

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Employees who score between zero and 60% on Microsoft’s internal review system will no longer be eligible to transfer within the company and will face a two-year ban from being rehired if they leave. Microsoft rates employees on a scale from zero to 200, which influences bonuses and stock awards.

Managers now have a year-round option to place struggling employees on a formal improvement plan. Workers can either accept the plan or opt for a voluntary separation with an exit package. Training sessions are also being rolled out to help managers better handle evaluations and explain performance expectations under fiscal year 2025 guidelines.

The new policies follow a broader shift across the tech industry, where companies such as Meta Platforms (META, Financials) have also cracked down on low performers. Microsoft earlier this year laid off about 2,000 employees without severance after a performance review sweep, according to Business Insider.

Microsoft said the changes are part of an effort to maintain high standards and stay competitive in areas like artificial intelligence, security, and product quality. The company declined to comment further.

This article first appeared on GuruFocus.