Has leadership communicated a reduction target or explained what declining the offer means?
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So, they’re not looking to get rid of all 60k. They went and got to this number because of the orgs that fully participated and their headcount. Those who did, every single employee 70 and below got an email. They have a target percentage they’re hoping to get out of this and if they don’t, then they’ll do the more traditional layoff to achieve that.
Just think logically
They have already recognized 60k people without whom they can live
Just my opinion, but a lot of times a company will float a number expecting 10% to 15% of the number to take the VSP. Who knows what is happening here. It's hard to deal with a number like 60000 people. I don't know what there plan is. Is 60000 a future value that they've determined that can be replaced by AI? I actually don't think it's 60000 people replaced. It's more like I am going to take away those 60000 jobs and disperse the load of those 60000 people amongst the remaining employees and give them an AI to use.
If they have chosen 60k it means they need these people gone
Either via volunteering now or by lay off later
Hope this is clear to all
@jc wonder no more. The company intentionally sent it to 60k employees. Now the ball is in the employees court. The 60k can make a choice: take the offer and leave, or don't take it but get ready to be kicked out.
Microsoft is following Intel's playbook. If you get an offer it means your services are no longer valued by the company. Take the package while you can because there might not be another opportunity like it.
I've always wondered, what if they only intend to give severance to half of the eligible employees, but all 60k accept? Can they rescind the offer for half of them? Then later make their lives miserable because they now know these other employees are wanting to leave?
Who knows
This first wave? Is voluntary.
The next wave? Bigger. And not voluntary.
Mostly nontechnical apparently
@d7 it could be that, but that 60k number, if it's not made up, that means the company actually has a business target and wants to the rid of them.
There's no rational business point to keep paying 40k-50k people just for the "fun" of having them in "constant fear". It just makes no sense.
A good rational decision would be first let anyone go to voluntarily and then layoff the rest without a drama.
They deliberately sent this to 60K employees, knowing they might only need 10K to accept (we don't know the actual target). Now all 60K are nervous, and thousands will start looking elsewhere, even if they don't leave for another six months. That's the point. MSFT is signaling that it can operate without them, and anyone paying attention should take the hint.
The smart move may be to take the money and run, which plenty will try to do. But there likely won't be enough spots, and MSFT will now know who's willing to jump ship. Those employees could be first in line when involuntary layoffs inevitably follow.
If I were betting, I'd put money on 10K voluntary and another 10K involuntary cuts before April 1, 2027. No insider information, just my interpretation of what's happening. It resembles previous layoff waves and makes the most sense to me. Good luck everyone, and be smart about your next move.
@a1
Critical employees don't receive the buyout offer email.
" losing critical experience" - There is no longer value to "experience". The inexpereienced will take an extra month to catch up and deliver - period.
Satya emphasized "Empathy".
"What happens if too few employees accept the buyout?" - It means there will be "involuntary" layoffs.
Intel did the same in 2023, 2024. And in 2025, 2026 they stopped doing it and just went straight ahead with layoffs.
Or you can assume that people with outside offers may be best positioned to leave. How would the company avoid losing critical experience while retaining employees who feel unable to move?