The quarterly earnings report comes two days after Microsoft offered voluntary buyouts to about 60,000 employees, roughly a quarter of its workforce, as the tech giant spends heavily on artificial intelligence investments.
Same reasons big retail companies do it. Release thousands of workers, absolve yourself from paying their insurances and salaries. Reap the rewards. Go back to hiring people, do it again for another quarter.
If they are doing this well, why are they trying to get rid of a bunch of employees?
Implies that they are getting replaced by bots.
Not to me, this implies to me that they overspent on AI and they now need to claw back some money.
more like COVID hiring.
in June 2019 they had 144,000 employees.
2020 163,000 employees
2021 181,000 employees
2022 221,000 employees
now they have around 230,000 employees
the spike in hiring coincides with the rise of COVID and moving the whole world online
after losing 60,000 they will have 170,000, still almost 30k more than 7 years ago.
Nice data, great theory.
I guarantee they are essentially offshoring most of these roles; as in they’ll focus on hiring in India and SEA moving forward.
They already employ a massive number offshore.
Same reasons big retail companies do it. Release thousands of workers, absolve yourself from paying their insurances and salaries. Reap the rewards. Go back to hiring people, do it again for another quarter.
Because less people to pay means more money for the higher ups at the company?
Let me introduce you to the trickling wonders of US economics…
The buyouts were offered to their aging orgs. Datacenter workers, quantum, MAI, sales and marketing, and cybersecurity were not included. https://finance.yahoo.com/technology/articles/microsofts-buyout-offer-employees-shows-135510739.html