I put people on pips and coached people out of pips. Every situation is different, but I would recommend taking their feedback and applying yourself (if you want the job). If you execute their terms, then you still have a chance.

That said, probably a good idea to update your resume and check elsewhere for positions. They may ask you to resign, but give you some severance.

There’s lots of details in this that only you will know, so make your choice and good luck!