‘Retired’: Microsoft phases out Perspectives peer feedback tool

Microsoft is retiring its long-standing employee feedback platform, Perspectives, marking another significant step in the company's ongoing transformation of workplace performance management. The decision reflects a broader strategy to replace structured feedback requests with continuous, real-time conversations between employees and managers.

Introduced in 2018, Perspectives enabled employees to request confidential feedback from colleagues throughout the year, with responses shared with both the employee and their manager. The tool was designed to encourage regular professional development beyond traditional annual performance reviews.

According to an internal HR communication reviewed by Business Insider, Microsoft believes employees benefit more from spontaneous, in-the-moment feedback than from formalized review systems. As a result, new feedback requests have been disabled, although users can complete existing requests and download their feedback history until September 15.

The change is part of a wider overhaul of Microsoft's performance evaluation process. The company has introduced a simplified five-level performance rating system while encouraging managers to differentiate employee performance more clearly. It has also asked managers to reduce the number of higher-level engineering roles as part of efforts to streamline organizational layers and improve operational efficiency.

These changes reflect a growing trend across the technology industry, where companies are shifting toward continuous performance discussions, greater accountability, and leaner organizational structures. Rather than relying on formal feedback platforms, Microsoft aims to foster ongoing coaching and regular communication between teams.

The announcement follows another major workforce initiative introduced earlier this year—a voluntary retirement program for eligible U.S. employees. The program offers healthcare benefits, severance pay, and additional stock vesting incentives to qualified employees whose combined age and years of service total at least 70.

One of the program's key benefits is extended healthcare coverage for employees retiring before Medicare eligibility. Microsoft will fully cover medical, dental, vision, and wellness benefits during the first year, while retirees will pay premiums during the following four years, helping bridge the gap until age 65.

With the retirement of Perspectives and broader performance reforms, Microsoft is reshaping its workplace culture to emphasize continuous improvement, clearer performance expectations, and more direct manager-employee engagement. The changes signal the company's evolving approach to talent management as it adapts to a rapidly changing technology landscape.