Microsoft retires peer feedback tool as it revamps employee performance reviews

Microsoft is retiring its internal peer feedback tool, Perspectives, as the company reshapes how employee performance is evaluated. The move forms part of a wider overhaul of Microsoft's performance review process, which includes simplified rating categories, sharper performance differentiation and changes to management structures.

According to an internal message viewed by Business Insider, the company has stopped accepting new feedback requests through the platform, signalling a shift away from formal peer assessments towards ongoing workplace conversations.

The decision marks another step in Microsoft's evolving approach to performance management as it continues to redesign its organisational structure and workplace expectations.

Formal peer feedback gives way to continuous conversations

Introduced in 2018, Perspectives enabled employees to request feedback from colleagues, with responses visible to both employees and their managers.

According to the internal communication cited by Business Insider, Microsoft believes feedback is most effective when shared during regular interactions rather than through structured requests.

The message stated the company had heard from both employees and managers that in-the-moment conversations provide greater value than formal feedback processes.

While employees can no longer initiate new requests through the platform, Microsoft will continue allowing them to:

• Respond to existing feedback requests
• Export historical feedback until September 15

The internal message suggests peer discussions will continue, but outside a dedicated software platform.

Part of a broader performance review overhaul

The retirement of Perspectives comes alongside wider changes to Microsoft's employee evaluation framework.

According to Business Insider, the company is simplifying performance ratings into five categories while introducing clearer distinctions between different levels of performance.

The changes coincide with broader organisational restructuring. Managers have also been instructed to reduce the number of employees in higher-level engineering roles as Microsoft continues efforts to flatten parts of the organisation.

The publication noted these measures reflect a wider trend across Big Tech, where companies are tightening performance expectations while redesigning organisational structures.

A shift from Microsoft's earlier approach

Perspectives replaced Microsoft's earlier Feedback Tool, which allowed managers to collect, review and summarise peer feedback during performance evaluations.

According to Quartz, which reported on the initiative in 2022, the platform was designed to create a less intimidating feedback experience and reflected Microsoft's efforts to build a more supportive workplace culture.

At the time, a Microsoft human resources executive told Quartz the company intentionally avoided using the word "feedback" in the product's name because employees often associated the term with negative experiences.

The transition to Perspectives formed part of Microsoft's broader cultural transformation under Chief Executive Officer Satya Nadella, which placed greater emphasis on collaboration and a growth mindset.

Performance management continues to evolve

Microsoft's latest changes indicate the company is placing greater emphasis on continuous performance discussions instead of periodic, tool-driven feedback collection.

The shift also reflects a broader trend among technology companies, where formal review systems are increasingly being redesigned to support more frequent coaching conversations while sharpening performance expectations.

Although the software platform is being retired, Microsoft's internal communication makes clear the company is not stepping away from employee feedback. Instead, it is changing how those conversations take place.

Performance reviews remain central to workplace strategy

The decision to retire Perspectives comes as organisations continue reassessing how performance is measured in increasingly dynamic workplaces shaped by AI, organisational restructuring and evolving leadership expectations.

For Microsoft, the latest changes represent another stage in an ongoing effort to align employee evaluation, organisational design and management practices with the company's broader business priorities.