| ▲ | ecshafer 2 hours ago |
| 60k workers, 1/4 of the workers. This is a big deal. It also really puts you into a bind if you receive the offer. Do you accept, take the money, and hope you can find a job (Now competing with many other Msft employees that are looking). Do you decline and hope you don't get hit with the layoff which hits if not enough people accept? |
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| ▲ | seizethecheese 2 hours ago | parent | next [-] |
| My dad was a newspaper reporter in the early 2000s, so there were several dinner table conversations about this dilemma. The buyouts were taken by superstars and low performers. The superstars moved on to other things, like working in other forms of media. Dad didn't take several rounds of buyouts and was fine. After suffering a stroke, he was "put out to pasture", which for a journalist means he was sent to cover city hall meetings in some suburb. Eventually, he retired with some much smaller payout than what the last buyout would have given him. The sense in the family was that the collapse of the industry denied him a dignified last decade of work. (When the industry was flush with cash, older journalists were sort of like "elder statesmen" in the newsroom. Post-internet, no longer.) |
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| ▲ | toomuchtodo an hour ago | parent [-] | | With all due respect, it's just a job, and we would do well to remember that. Chasing status and respect through work will lead to sadness (reality - expectations = happiness). I think we should buy people out with reasonable comp and let them live the rest of their life doing something that brings them joy and happiness, even if that's volunteering in what they used to get paid for. But I'm not a policymaker. A whole lot more of us are going to get involuntarily put out to pasture through no fault of our own eventually. 'I've applied for 300 jobs. My 25 years' experience is worthless' - https://news.ycombinator.com/item?id=50182823 - October 2026 (111 comments) | | |
| ▲ | Angostura 3 minutes ago | parent | next [-] | | I was a journalist in the old days. With all due respect it was mote than just a job. It was a community, a calling. It felt important. I went out to dinner with my first ever boss and some original colleagues a couple of months ago and had a great time. | |
| ▲ | bevr1337 an hour ago | parent | prev | next [-] | | Local journalism _feels_ like more than a job. Before my CS career, I was a photojournalist for a few different daily papers. It felt like important work. We were history keepers and story tellers for a community. | | |
| ▲ | toomuchtodo an hour ago | parent [-] | | It is important work, but we have yet to find an economic model to effectively support it and the people doing the work. (i donate to journalism orgs across the US [ProPublica, Associated Press, Tampa Bay Times, Salt Lake Tribune, Marion County Record, Muckrock], but far more and consistent financial support is needed than these orgs are receiving today) |
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| ▲ | user_7832 39 minutes ago | parent | prev | next [-] | | I agree that it's a job, but.. for most of humanity, people lived and worked in the same spaces with the same humans. The home was a unit of (pre) industrial production. Your neighbours were your partners, or at least involved in general economic activities with you. Our human brains unsurprisingly still default to that, and it is quite understandable imo. | |
| ▲ | advael 28 minutes ago | parent | prev | next [-] | | I tend to agree with the idea that one shouldn't define oneself by a job, especially since one's career is generally dependent on some combination of market forces, institutional gatekeepers, and other factors that are beyond one's control to varying degrees. However, people do tend to put that kind of personal investment into things they spend most of their time on, and especially things they had to spend a long time training for. In order to realize a world where people aren't defined by their career, we would need to first realize a world in which people weren't equal parts encouraged and forced to put most of their time and effort into one, which would require somewhat different economic arrangements than presently exist | |
| ▲ | xphos 36 minutes ago | parent | prev | next [-] | | I think you should review your equation reality - expectations - uncertainy = happiness/saddness It might just be a job but someone living happy in good conditions that feels like the rug might get pulled under them for something they cannot control for is a lot more unerving even if your material conditions work out just fine in the end. Also I think your being a little atomizing in the impact here. 1 Person losing a job is their problem, I agree. 60 thousand people losing there job is a problem for the government and society. 60K people is a lot and it has a ton of consquences. This is also leading into the prospects of we have these massively profitable corportations who are on the cusp of firing large % of high income people. Whats the tax implication of losing 60K engineering staff level saleries. Its atleast in the billions which is small in the total Federal revenue but if this is a sign of whats to come we have problems. Maybe those people go to different employment but change will effect a lot of local economies. Granted I know you are really talking about the local emotional effect but the granular net effect is worth the conversation too. | | |
| ▲ | riquito 2 minutes ago | parent | next [-] | | I like your comment but I think you're generalizing too a bit in a different way. It's 60k people spread in different countries, at least four. It is still a big problem, but it's not "the tax implication of losing 60k salaries" for a single government | |
| ▲ | toomuchtodo 34 minutes ago | parent | prev [-] | | Equation comes from https://waitbutwhy.com/2013/09/why-generation-y-yuppies-are-... In the US, currently, ~4M Boomers retire a year, ~11k/day, ~2M people 55+ die every year, about half of which are in the labor force; that means ~13k-14k workers leave the labor force every day in the US, ~400k/month, ~4.8M/year. 60k workers leaving Microsoft is a drop in the bucket, relatively speaking. But of course, they should still get as much support as possible via the packages they accept, and getting to retirement (Social Security and Medicare benefits) as pain free and least uncertainty as possible. > Granted I know you are really talking about the local emotional effect but the granular net effect is worth the conversation too. I vote for and support Democratic Socialist candidates, who would implement and maintain more humane and pro worker economic systems, I'm doing my part at system levels. But systems will take decades to change. It took decades to get here from Ronald Reagan and his policies. Certainly, people should never be in economic peril, but they also shouldn't tie their identity to their job, or think their job matters. The evidence is robust that the job does not matter. (and if you think there is a problem with corporate earnings vs what workers take home, again, that is a political and labor organizing problem to solve for) St Louis Fed: US Wages Share of GDI at 75 Year Low - https://news.ycombinator.com/item?id=50238884 - October 2026 Pew Research: Many Americans Are Struggling to Afford Basic Necessities - https://news.ycombinator.com/item?id=50197020 - October 2026 Gallup: A majority of Americans have low-quality jobs - https://news.ycombinator.com/item?id=50195502 - October 2026 (i am once again asking to think in systems) | | |
| ▲ | ericmay 18 minutes ago | parent [-] | | > In the US, currently, ~4M Boomers retire a year, ~11k/day, ~2M people 55+ die every year, about half of which are in the labor force; that means... Sure, from a raw numbers perspective it's a drop in the bucket. But not all numbers are created equal. How does the pay of these employees from Microsoft compare? You mention those of the baby boomer generation, but are all employees who may be leaving Microsoft of the same age range? What about their skillsets and the investments they and we as society of spent in their education? Those other factors matter quite a bit, so you can't just do a simple 1-1 analysis of "people". > Certainly, people should never be in economic peril, but they also shouldn't tie their identity to their job, or think their job matters. The evidence is robust that the job does not matter. Why? Which evidence? I think more people could have more meaning if they were self-employed, were craftsmen or artisans, and such, but this nihilistic viewpoint (which is a hallmark of anti-social/authoritarian ideologies like DSA and others) not only doesn't reflect reality but seeks to belittle those who do in fact find meaning and joy in their work. I for one like my job and have liked most of the jobs I've had. Just because an organization no longer needs you, or you no longer need it, doesn't mean that the job all of a sudden "doesn't matter". If people don't tie their identity to the thing they spend the most time doing what will they tie it to? Should a police officer or teacher not think of themselves through the lens of their chosen profession? When you ask a professor at your university do you want to work with one who doesn't tie themselves to their work or their research? Would you want to buy produce from a farmer who sort of doesn't care about the quality of the food they grow? Do you want to fly on an airplane built by people who think their job doesn't matter? | | |
| ▲ | toomuchtodo 16 minutes ago | parent [-] | | If the org can operate without you in the role, or without the role itself, the job does not matter. The human always matters, the job does not. > If people don't tie their identity to the thing they spend the most time doing what will they tie it to? Should a police officer or teacher not think of themselves through the lens of their chosen profession? When you ask a professor at your university do you want to work with one who doesn't tie themselves to their work or their research? Would you want to buy produce from a farmer who sort of doesn't care about the quality of the food they grow? Do you want to fly on an airplane built by people who think their job doesn't matter? Finding meaning in the human condition and experience I suppose. Is that in your job? I argue no, but everyone will find meaning in their own way, if they find it before death. If it is your job, and you are involuntarily retired, my condolences. I fly on Boeing equipment occasionally (not my choice), so I definitely fly on airplanes built by companies who think building good aircraft doesn't matter. I'm sure some people at Boeing care, but not enough to overcome institutional inertia of "bean counter idgaf". Society, broadly speaking, runs on everyone doing just good enough in the aggregate to keep the system running. Some systems are better than others (Japan institutionalizing perfectionism, for example). | | |
| ▲ | ericmay 10 minutes ago | parent [-] | | > If the org can operate without you in the role, or without the role itself, the job does not matter. The human always matters, the job does not. Blueberries grow in the wild, ergo farmers don't matter. > Finding meaning in the human condition and experience I suppose. Is that in your job? I argue no, but everyone will find meaning in their own way, if they find it before death. So why are you prematurely defining what meaning should be for everyone? That's one of the problems with these authoritarian ideologies. > I fly on Boeing equipment occasionally (not my choice), so I definitely fly on airplanes built by companies who think building good aircraft doesn't matter. I'm sure some people at Boeing care, but not enough to overcome institutional inertia of "bean counter idgaf". I don't understand this at all. Clearly they care a lot or else these planes would be crashing and stuff. If you think they don't care and you're saying flying on the aircraft sucks because they don't care, then maybe they should care more about their jobs and then it would be a better experience, which sort of runs counter to your thesis here. |
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| ▲ | sixothree an hour ago | parent | prev [-] | | > it's just a job Considering what you're responding to, it sounds like you're suggesting people over 55 don't deserve to be respected or have a good position in life. | | |
| ▲ | toomuchtodo an hour ago | parent [-] | | > I think we should buy people out with reasonable comp and let them live the rest of their life doing something that brings them joy and happiness, even if that's volunteering in what they used to get paid for. But I'm not a policymaker. Respect is how you feel, a good position in life is a function of your retirement benefits and financial comfort. If the market has no place for these folks anymore, and we're not offering a permanent jobs bank to keep people working who want to work (which I absolutely think we should do), "it is what it is." Sorry if they feel bad about market changes and demand for certain skills and labor. We show respect by packaging folks out to live comfortable remainders of their life. "Thank you for your contribution and service." Lack of respect is leaving them hanging in the wind financially, not words. If you need a job to feel needed and respected after entering retirement and with sufficient financial and retiree benefits support, we'll throw a standing appointment with a therapist into the package and/or a volunteer opportunity online board/bank. If you're looking for validation from your job or your work as a component of your identity, you're going to end up sad. That's a choice. Make better choices if you don't want to be sad. |
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| ▲ | locusofself 2 minutes ago | parent | prev | next [-] |
| The worst case scenario is not taking the offer then getting let go for performance, which means zero severance, health insurance terminated same day. This has been happening at Microsoft for the last few years, sometimes in large waves. Many of these people were not egregious non-performers, just people who had been marked as not quite meeting expectations, and thought they had another chance. |
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| ▲ | reenorap an hour ago | parent | prev | next [-] |
| When they offer a package YOU ALWAYS TAKE IT. It means that layoffs are coming. My friend's company offered a voluntary severance package to a bunch of employees. She was talking to one of her employees and she knew that he was going to get laid off if he didn't take the package but was unable to advise him. I think the voluntary severance was 2 years medical, 2 years of vesting, many months of pay, etc. But he decided not to take the offer and was laid off for a much worse package a few months later. ALWAYS TAKE THE VOLUNTARY SEVERANCE. |
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| ▲ | hypfer an hour ago | parent | next [-] | | I have doubts that this is suitable as a generalized statement like that. Ignoring specifics, the corp offers a package because they want you to take it. That means that you taking it is in their best interest. It might also be in your own best interest, but it might also not be. That's something that needs to be evaluated on a case-by-case basis | |
| ▲ | tshaddox an hour ago | parent | prev | next [-] | | It obviously depends on the specific amounts of the package as well as the timeline and personal impact of the upcoming layoffs (the latter of which you can’t know). The company doesn’t necessarily want everyone to take the package, and they’re inevitably going to price the separation benefits such that some employees would end up better off taking it and others would end up better off not taking it. | |
| ▲ | jere 28 minutes ago | parent | prev | next [-] | | Always? What I’ve seen is sometimes the buy out is no better than the current severance package. Might as well ride it out. The severance could in theory get worse over time but that doesn’t seem like a worthwhile reason to throw away your job. You’re also throwing away unemployment. | |
| ▲ | christkv 5 minutes ago | parent | prev | next [-] | | Hah not always. I worked at a bank where they offered this and I applied and I was denied and told I was essential. | | | |
| ▲ | John23832 40 minutes ago | parent | prev | next [-] | | If you take it you're not eligible to unemployment. I think in this market, given the undefined length of employment searching at the moment, that's a major consideration. | | |
| ▲ | hibikir 13 minutes ago | parent | next [-] | | For most Microsoft employees, the maximum unemployment benefits in most states are a rounding error vs the buyout offer. Here in Missouri it's $320, maxed to 20 weeks. So for most local employees that might get this letter, It's less than a month of salary, and that without accounting for months of health benefits, which I bet the buyout includes. | |
| ▲ | cactusplant7374 35 minutes ago | parent | prev [-] | | Unemployment isn’t very much, is it? | | |
| ▲ | 0cf8612b2e1e 12 minutes ago | parent [-] | | Ah tech money. Not everyone has options and unemployment can be the difference between being on the street or eating ramen. |
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| ▲ | BeetleB an hour ago | parent | prev [-] | | Having been in a company for many years, that every so often had these packages, I disagree. Yes, of course it means layoffs are coming. This isn't a conspiracy. The whole point of these packages is "We want people to leave. The more people who take the package, the fewer the number that is laid off." If the package is going to only a small percentage of the company, then yes, it's a sign they'll get rid of you. When it's offered to such a large number, then it's just a lottery to see who'll lose their jobs. Like all lotteries, the chances of you being impacted are low (e.g. 10% was the max in my case). |
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| ▲ | Twirrim 2 hours ago | parent | prev | next [-] |
| I've a neighbour who declined, and then got hit by layoffs. It was quite a gamble, and they lost out big time. Honestly, if work was to come at me with a buy-out offer, and I was in a position to be able to afford to not work for a few years, I'd probably accept. Maybe go find some non-tech work for a little bit to stretch the dollars and ensure I have health insurance. We're in such a bubble at the moment, things are going to get really rough. |
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| ▲ | garbawarb an hour ago | parent | next [-] | | Wouldn't they also get layoff severance? Or was the amount significantly lower than tbe buyout would have been? | | |
| ▲ | toast0 42 minutes ago | parent [-] | | Often, buyouts terms are more generous than layoff terms. Even if the company has a history of generous layoff terms, the next one may be less generous. The other thing to consider is if you'll want to keep working at the company after so many people have left due to the buyout and the layoff. If not, taking the buyout and looking for a new job is likely to be better for you than not taking the buyout, not getting laid off, and looking for a new job once you conclude you don't like the new environment. For one thing, you'll probably have buyout compensation and new job compensation at the same time; for another, it may be easier to find a new job if you're in the market before the layoffs increase the hiring pool. |
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| ▲ | taiwan_num1 8 minutes ago | parent | prev [-] | | Not to start an argument, but do you really think you could easily find non-tech work that also provides health insurance? I get a little triggered at this line of thinking. People often day dream about working as a Costco receipt checker without realizing you literally have to work your way up from seasonal to part-time to full-time over years. And that's assuming you can even get hired as a seasonal worker with a 5+ year unemployment gap on your Resume (your SWE career). I'm realizing I'm a little bit too passionate about this lol but I would love to hear if you have a specific plan or goal in mind so I can copy it. For me BaristaFIRE would be ideal, but with so many friends going through the layoff/unemployment cycle and hearing their experiences I've concluded it's much more pragmatic to stay in tech. |
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| ▲ | Nemo_bis 2 hours ago | parent | prev | next [-] |
| > Certain pools of employees, including some focused on data centers, sales and marketing, aren’t eligible, the spokesperson said. https://www.bloomberg.com/news/articles/2026-10-26/microsoft... Sales alone is some 25 % of Microsoft expenditures, so are these 60k about 50 % of what's left? |
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| ▲ | rawgabbit an hour ago | parent | prev | next [-] |
| A couple of times in my career, I was one of those who were not given out a buyout. I was chosen to keep the lights on while the number of employees shrank every month. It sucked. I was given responsibility for systems with no documentation or than a username/password. I was called by all sorts of people I had never spoken to who had their hair on fire because the system was breaking left and right. I wished I was given the buyout; instead I was told I should be grateful I had a paycheck. No thanks. |
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| ▲ | SoftTalker 2 hours ago | parent | prev | next [-] |
| Probably trying to entice people who are close to making a FIRE move (or even just close to normal retirement) to go ahead and do it. If you still need a job, I don't see it as being very attractive in this environment, unless you're quite senior with very marketable skills. |
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| ▲ | NikolaNovak 2 hours ago | parent | prev | next [-] |
| I've never been involved in such a situation, but I assume part of individual's calculation is: If I indicate interest, but the company doesn't accept it or go through with it and keeps me... am I now viewed as a disloyal, detached worker? |
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| ▲ | arebop an hour ago | parent | next [-] | | I've been given such an offer. The company gave eligible employees X days to opt in and then it gave itself Y days to decide which volunteers would get buyouts. This matter of loyalty perception was certainly a live question for the employees. But also the company did iterative buyouts so in later rounds there was some evidence available to the current prospects about how employees were treated earlier. Not so much in what opportunities were withheld from the "disloyal" but in the take rate of volunteers and in the probability of being "laid off" given the receipt of an earlier buyout offer. | | |
| ▲ | peterbell_nyc an hour ago | parent [-] | | Ahhh, I retract my previous statement. I assumed it was "do you want to accept the offer". If it is "do you want to be considered for the offer" that's a little more complicated... |
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| ▲ | ricardobayes 38 minutes ago | parent | prev | next [-] | | Anecdotal, but I had an acquaintance try to use the buyout and was point blank told by management "it's not for you". | |
| ▲ | peterbell_nyc an hour ago | parent | prev | next [-] | | Not a problem. While it is reasonable to consider the signaling impact of all your comms at work, if you take this, they'll smile at getting closer to quota and wish you well. Reasons to accept. Reasons to decline, but that isn't one of them. | |
| ▲ | whoamii 2 hours ago | parent | prev [-] | | Company sends you offer first |
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| ▲ | paxy an hour ago | parent | prev | next [-] |
| Just because the offer is made to 25% of the workforce doesn’t mean they will all accept. These are generally very well paid jobs and the prospect of entering the job market right now isn’t going to appeal to everyone. Especially not when you have upcoming RSU vests after a recent 50% stock rally. If say a third of the employees accept then it’ll be an ~8% reduction, which is in line with a regular company-wide layoff. |
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| ▲ | mirmor23 an hour ago | parent [-] | | There is a difference this time though. There has never been a time in last 40 years where being laid off seemed terrifying for knowledge workers in tech. It's speculative what's ahead, but man, does it LOOK bleak. Many would still come out OK, but it's not a given. | | |
| ▲ | toast0 35 minutes ago | parent [-] | | > There has never been a time in last 40 years where being laid off seemed terrifying for knowledge workers in tech. How about the last several times all of big tech was laying off tons of people at the same time? I'm not going to disagree with "this time it's different", but I've seen this fear several times before. This time it's AI that's going to take our jobs, and maybe that will happen, but it's not the first threat. | | |
| ▲ | mirmor23 29 minutes ago | parent [-] | | > How about the last several times all of big tech was laying off tons of people at the same time? I meant the layoffs due to AI, not the typical tech tech layoffs that are as old as tech itself. |
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| ▲ | teepo 2 hours ago | parent | prev | next [-] |
| If they're doing similar to what was mentioned back in April there is some calculation about current age + years of service that could be tempting to people on the "bubble" of retirement. |
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| ▲ | j45 2 hours ago | parent [-] | | Like with any deal, it's important to be able to run the numbers at any time. |
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| ▲ | pjmlp an hour ago | parent | prev | next [-] |
| I have been through a similar situation at a former employer, during the aftermath of 2008 crisis, and is complicated. Exactly as you place it, the way they found out to push for buyouts was to terminate existing positions. Everyone was forced to decide between taking the buyout, or apply to internal positions instead, naturally the later was much more complicated than just taking the money. |
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| ▲ | hn_submit an hour ago | parent | prev | next [-] |
| If you get the offer take it and start your own company with it. There's no use in staying if you're not wanted and even though you'll get a severance package it won't amount to much more than a couple months back pay. |
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| ▲ | hi41 36 minutes ago | parent | prev | next [-] |
| Didn’t Microsoft have an issue with VP Vance regarding layoffs and all the perm processing were stopped. So why is MS doing this which will bring more trouble. |
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| ▲ | equal_footing 2 hours ago | parent | prev | next [-] |
| Phew, scary! But it maybe a very real question to ask ourselves. 2027 may be the year when all companies do the same and follow the MSFT model. |
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| ▲ | hn_submit 42 minutes ago | parent | next [-] | | Big companies are notoriously overweight and need to trim down continuously. Microsoft is already a big bureaucracy and nothing like the start-up mentality it had throughout the 80's and 90's. It's fine for them to get rid of excess weight. My guess is they could probably cut a lot more if they wanted. | |
| ▲ | resource0x an hour ago | parent | prev [-] | | 1/4 becomes a de facto standard, the companies will be expected to follow starting right now. |
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| ▲ | vkou 2 hours ago | parent | prev | next [-] |
| With these kinds of offers, they don't expect to get rid of 60,000. They expect to get rid of Y,000. They make the offer to 60,000 (typically, an entire department gets this offer, including people they want to keep). Some X,000 will take the offer. If Y,000 > X,000, they they lay off the difference. |
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| ▲ | fhn 28 minutes ago | parent | next [-] | | Including people they want to keep? What if all the people they wanted to keep accepted while those they didn't want to keep stayed? Certainly makes no sense. | | |
| ▲ | jasomill 7 minutes ago | parent [-] | | I imagine they don't extend the offer to specific people they want to keep. I'm still not sure what the advantage to the company of an offer like this is versus layoffs where management gets to choose who leaves, unless they feel the "loyalty test" of deciding to stay is worth more than their own evaluation of employee performance. |
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| ▲ | silisili an hour ago | parent | prev [-] | | This is what I was wondering, if they have some internal math that says "15% will probably take this offer" targeting a lower number like 10k. And if they overshoot, it's not like they'll have trouble refilling positions in this economy... | | |
| ▲ | guywithahat an hour ago | parent [-] | | You say that but the economy seems pretty strong to me, we have lower than average unemployment with above average job listings. It's harder if you're on visa otherwise it's pretty competitive | | |
| ▲ | ibejoeb 39 minutes ago | parent [-] | | In general, and especially for the technical roles, they are probably going to have trouble finding relatively similar compensation. |
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| ▲ | 2 hours ago | parent | prev | next [-] |
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| ▲ | carlosjobim an hour ago | parent | prev | next [-] |
| > Do you decline and hope you don't get hit with the layoff which hits if not enough people accept? If they need your skills after restructuring, you will be offered your old job back and get to pocket the buyout money. If they don't need your skills, you're going to get fired anyway. At least that's how any rational company would handle it. Employees are supposedly hired because they contribute to the company, not to fill seats. |
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| ▲ | Hamuko an hour ago | parent [-] | | A rational company would not buy out an employee that they're going to be rehiring. | | |
| ▲ | vineyardmike 9 minutes ago | parent | next [-] | | You cannot act with perfect information when you're making an offer to 25% of a company that size. If they were able to and willing to plan this on a per-person basis, they wouldn't be in the position of mass-buyouts. It's very common in these situations to target every org in the company with a goal of X% reduction. If a small fraction of these teams now need extra headcount, easy enough to allow those teams to hire. Usually you don't keep the severance if you return in under X days. I've personally been laid off, only for the post-re-org team to hire several people, including asking to rehire me. It's rare, and those affected should probably plan to find new jobs, but it happens. | |
| ▲ | bongofizzbuzz 16 minutes ago | parent | prev | next [-] | | Yes, but companies realise the important cogs much later in the process. | |
| ▲ | sumtechguy 19 minutes ago | parent | prev | next [-] | | typically in that case the boomerang is they come back but as a consultant. just doing the same thing they were doing before but at a different rate. usually higher to cover health ins plus a bit of a bonus. | |
| ▲ | fhn 26 minutes ago | parent | prev [-] | | But with the job market the way it is, they could re-hire at a lower compensation? |
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| ▲ | pseudosavant 2 hours ago | parent | prev | next [-] |
| Microsoft made $134B in net income in the last 4 quarters. It used to be if you worked for a company that was printing boat loads of money that you had job security. Now, even if the company is crushing it, they'll still see employees more as a cost center instead of a revenue generator. |
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| ▲ | SoftTalker 2 hours ago | parent | next [-] | | No, this has never been the case. Companies are and always have been very conscious of wage and salary expenses, as it's one of the most controllable categories on the P&L. | | |
| ▲ | pseudosavant 41 minutes ago | parent | next [-] | | They are making $600k in net income per employee. 10+ years ago, I'd never seen a mass layoff at any company making that kind of money per employee. Their net income is up more than 2x in just the last 5 years. 10 years ago, Microsoft only had $85B in revenue, now they are up to $134B in net income, and they need to let 25% of the company leave? | | |
| ▲ | hibikir 3 minutes ago | parent | next [-] | | If I have a team of 20, making a lot of money, but I think I can do the exact same job with 15 because of AI productivity gains, should I keep the other 5 employed for the vibes? The total net income doesn't matter: The move is management saying they are overstaffed for the work they think they need. Assume Microsoft is expecting just a third of people to take the offer. It's just too many people to want to move to a different division that needs more labor: It's basically entire divisions that they'd have to create from whole cloth. | |
| ▲ | mr_toad 18 minutes ago | parent | prev | next [-] | | > now they are up to $134B in net income, and they need to let 25% of the company leave? Tomorrow they’ll announce that they’re going to spend $134b on new data centers. | |
| ▲ | ricardobayes 35 minutes ago | parent | prev | next [-] | | Contrast that with NVIDIA's princely $2.5M net income per employee. | |
| ▲ | bijowo1676 34 minutes ago | parent | prev [-] | | profitable divisions are making more than that per employee while other divisions are sinking ship there always a case for a yard cleanup and decluttering |
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| ▲ | xphos an hour ago | parent | prev [-] | | But like if your company is making money hand over foot you didn't typically cut staff by 25%. You could just as easily do a hiring freeze and get out ahead of it. I mean if your profit metric is showing all green and growing you have to be really cold to say we need to fire 1/4 people now why? (to maximize shareholders short term value of course) | | |
| ▲ | datakan an hour ago | parent [-] | | They aren't cutting staff because they made a ton of money. They are cutting staff because they see trouble on the horizon and are positioning themselves for that. Layoffs are rarely lagging indicators. They are more often predictors of trouble coming. This bubble will explode, MSFT wants to survive it. Thats all there is to it. |
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| ▲ | cyanydeez an hour ago | parent | prev [-] | | this is definitely about over investment in AI, regardless of whether it was smart or not. They need to recover those monies. |
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| ▲ | ls-a 2 hours ago | parent | prev [-] |
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