Microsoft is phasing out its long-running employee feedback tool, Perspectives, as the company continues to reshape how it evaluates performance and workplace growth.
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 broader overhaul of Microsoft’s performance management strategy.
“The Perspectives tool is being retired,” as per the message. “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.”
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Perspectives was introduced to make peer feedback a regular part of work rather than something tied only 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 the tool down overnight. Employees can no longer submit new feedback requests, but they can still complete existing ones and download their feedback history through Sept. 15, according to the internal communication.
The move comes as Microsoft rolls out broader changes to its performance review process. The company has adopted a simplified five-level rating system while placing greater emphasis on distinguishing employee performance. Managers have also been directed 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 major workforce announcement earlier this year. In May, Microsoft introduced its first voluntary retirement program for eligible U.S. employees, offering a package that combines healthcare benefits, cash severance, and additional stock vesting incentives.
The program is available to about 8,750 employees, roughly 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.
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One of the biggest incentives is 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 cost 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, the 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.