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Microsoft offers buyouts up to 7% of US employees

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Re: Microsoft offers buyouts up to 7% of US employees

#61
post #12

I feel like paying your most experienced employees to quit is exactly the opposite of what Microsoft needs right now. Paying to get rid of your institutional knowledge and experience is an insane move, especially as everything is on fire.

I'd think of it this way:

Folks who have institutional knowledge that is really critical to the company are likely treated quite well in prestigious roles and paid handsomely. If they take a modest buyout offer, it's probably because they were close to retirement anyway. Any truly critical role will have a succession plan. And if someone the company really doesn't want to lose signals they intend to take the offer without a credible succession plan, the company could just make them an even better personal offer to stay.

At the same time, I'm sure there are many folks who over-estimate how important their role and knowledge are to the company, especially to its future, which may look increasingly different from its past. Some of these people can become active blockers or political problems that are difficult, visible, and painful to deal with. Getting them to exit on their own is a win for the company, and it avoids the morale problem of visibly performance managing them or firing them.

Re: Microsoft offers buyouts up to 7% of US employees

#62
post #25

Can't help but notice the trend of tech companies shaving employees at an accelerating pace. Nobody wants to admit this (and there's a lot of reasons it could be temporary factors like "overhiring"), but to me this seems primarily if not exclusively driven by AI. You just can't say that to HR. The bigger question is if this keeps accelerating, can the industry and broader economy handle so many jobs disappearing, so…

Microsoft hired a lot of people post-covid. Googling, they went from 125k employees in 2017, to 163k in 2020, to 221k in 2022, and have been mostly steady in size since then (latest number from 2025 is 228k).

How "temporary" is overhiring? I think that they could probably cut quite a bit from the company, and it might actually improve their output.

Re: Microsoft offers buyouts up to 7% of US employees

#65
post #12

I feel like paying your most experienced employees to quit is exactly the opposite of what Microsoft needs right now. Paying to get rid of your institutional knowledge and experience is an insane move, especially as everything is on fire.

I assume this voluntary retirement offer will be something like 2 weeks of pay per year of service, plus maybe 16 weeks. And you get to keep your unvested stock. If that's not too far off, you'd expect a principal engineer's gross expected value to be something like 800k from such a move. It seems like the net opportunity cost of accepting the VR would play out like:

1) you lose 1 or 2 million net, in the scenario where you would've otherwise stayed working 4 more years. 2) you lose ~200k net, in the scenario where you get another comparable job, but the job search takes 9 months. 3) you come out ahead if you were about to retire/get laid off anyway.

So, I don't think this plan is going to eliminate a random sampling of senior folks. The folks who accept this offer will tend to be ones that don't super enjoy the work itself, or ones that anticipate bad rewards or impending layoff.

In other words, I doubt it will be a sweet enough deal to entice the already-rich, high performing principal engineers, or the passionate nerds who are just there because they want to be.

Re: Microsoft offers buyouts up to 7% of US employees

#68

Earlier quoted context omitted.

Speaking as a greybeard, it's not really that valuable. Younger people are just as smart, if not smarter, and they can figure it out if I get hit by a bus. There's literally nothing I know that someone younger couldn't learn or figure out.

Microsoft uses React Native in their Start menu because the kids don't know Windows programming anymore.

Windows native app development is a mess https://news.ycombinator.com/item?id=47475938

Re: Microsoft offers buyouts up to 7% of US employees

#69
post #20

> years of work at Microsoft plus their age totals 70 Is that ageism? How is that different than saying if their gender is Y, their race is X or their religious belief is Z?

Not all ageism is illegal.

I am not a native English speaker so I actually geniunely wonder:

1. Could you please tell more?

2. Could this be said for other -ism s as well? (Sexism, Racism, Ableism, Classism, Nationalism, Nepotism)

Re: Microsoft offers buyouts up to 7% of US employees

#70
post #12

I feel like paying your most experienced employees to quit is exactly the opposite of what Microsoft needs right now. Paying to get rid of your institutional knowledge and experience is an insane move, especially as everything is on fire.

Maybe, but whoever are currently there aren’t making Windows 11 better.
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