cross-posted from: https://lemmy.zip/post/73939581

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[–] 81 points 2 weeks ago (1 child)

Go ahead and remove the other 75% as well.

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  • [–] 121 points 2 weeks ago (11 children)

    Yup, exactly what we need to fix the AI/Human Slop software they have been spitting out for a few years now.

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  • [–] 45 points 2 weeks ago* (last edited 2 weeks ago) (10 children)

    I believe they knew they’re losing the pc market. They dismantled windows team like 6 months ago.

    Edit: I could not find a source.

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  • [–] 20 points 2 weeks ago (5 children)
  • [–] 2 points 2 weeks ago

    I admit it that I couldn’t find a source.

    I remember reading an article posted here on lemmy around the time Asha Sharma shared her email to all Xbox employees about job cuts taking about how Microsoft focused on cloud and AI to the point they move around 4k engineers working as Windows team to other teams.

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  • [–] 4 points 2 weeks ago (2 children)

    Losing to who? Use any office PC anywhere and it's almost guaranteed to be a Windows PC.

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  • [–] 31 points 2 weeks ago* (10 children)

    I really don’t understand what Microsoft is doing here, well I will just pretend to be willfully ignorant for a second:

    When company such as Microsoft is presented with the gift of drastic improvement in productivity, why is their first reaction to lay people off? Shouldn’t they capitalize on the gains, take on more work, release more products gain market share and make more money? Microsoft is a software company. Why aren’t they releasing more software? Why are they laying people off in their video games studios?

    There are so many segments of the software and hardware industry they could enter or re-enter or expand. Video editing software, music production software, social media, micro computers, consumer electronics accessories…

    Either they have no leadership or they know the productivity gains are not real, or both.

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  • [–] 7 points 2 weeks ago (2 children)

    I think they know/strongly suspect that the bubble is about to pop. They are trying to drastically cut expenses to better weather the coming economic storm.

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  • [–] [S] 7 points 2 weeks ago*

    Only way I can possibly make sense of it is to put myself in the shoes of a capitalist executive. My job is on the line with AI companies reporting massive losses and an earnings call is coming up. If I don't care about human beings, I can just lay them off and that will reduce headcount expenditure so that earnings looks better after spending massive capex on AI. Not to mention the market rewards such announcements by increasing stock valuations since we're running more lean.

    However, such a large amount of layoffs could prove unpredictable for workplace morale.

    What if we didn't have to pay most of the benefits we do and allow many of our headcount to choose on their own when to leave? We look better in the public eye, we can have a lead time for a couple months so that this earnings report on Wednesday will look like a massive shift for the year end earnings call when we're looking for more investment. We'll be operating so lean it'll be insane. And anyone who doesn't leave voluntarily we can simply lay off afterwards and it'll be a smaller number of layoffs, which the public already treats as normal operating procedure, weeding out the undesirables.

    Let's do it.

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  • [–] 5 points 2 weeks ago

    Microsoft is in the looting-by-executive phase of development, I don't know why. I suspect that they see hard times for the company ahead and are extracting every cent that they can before the hammer falls.

    My opinion

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  • [–] 4 points 2 weeks ago*

    Like others said, it looks better next quarter than a bunch of new projects. Short term gain vs long.

    But also, their expenses from all that hosting and usage are high. They’ve masked it creatively, but that only works so long.

    Maybe they’re trying to make their balance sheet look less catastrophic in the short term (again, at the expense of the long term).

    Whatever it is, that will be the underlying theme. Things must look good immediately, at the expense of sustainability.

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  • [–] 3 points 2 weeks ago* (last edited 2 weeks ago) (1 child)

    New products take a long time to plan, develop, and launch at large companies like Microsoft. Laying off 60k employees is quite a bump in quarterly profits.

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  • [–] 1 point 2 weeks ago (1 child)

    thier execs and csuites expect a golden parachute thats why.

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  • [–] 1 point 1 week ago

    I don't have a problem with golden parachutes. If you got the juice to negotiate one in your contract and the company accepts because they want you badly enough, good for you. Keep in mind, at C-suite level, particularly CEO, people are often brought in to make unpopular decisions and take the heat for those before being fired for doing exactly as they were told. Yeah, I'd want some sort of guarantee.

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  • [–] 28 points 2 weeks ago (4 children)

    This is the company that took 5 years to allow you to move the taskbar again. But now that you can, they no longer need the 60,000 people involved in that project.

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  • [–] 5 points 1 week ago

    Meanwhile in KDE, I can multiple taskbars of different sizes. I have 3 in the SAME row. A tiny one for virtual desktops, a tiny one for a usage monitors, and ofc the normal one, half my screen size wide. For such high-tech M$ would probably need a human lifetime, or 20k agents.

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  • [–] 55 points 2 weeks ago (3 children)

    Makes sense, the line must go up at all cost. This years profit has to be way way way WAY bigger than last years, otherwise what is even the point of running a multi trillion dollar business.

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  • [–] 26 points 2 weeks ago* (2 children)

    If ONLY we had Cut Their Taxes they would be HIRING people INSTEAD of Firing People! If ONLY!

    -LITERALLY Republicans who Cut Their Taxes!

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  • [–] 41 points 2 weeks ago
    [–] 20 points 2 weeks ago

    Hire to create the illusion of growth, fire to create the illusion of competence. Rinse and repeat ad infinitum.

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  • [–] 18 points 2 weeks ago (1 child)

    Yea this is the exact type of shit I expect to read in a serious recession. Great now we have 60,000 skilled tech workers with years of experience competing in the job market that's already fucked.

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  • [–] 35 points 2 weeks ago (8 children)

    including those working in AI experiences, Copilot, finance, human resources, Xbox and Windows + Devices

    Joy. Well, maybe that means they're moving away from copilot...

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  • [–] -1 points 2 weeks ago* (6 children)

    Why would they fire AI 'marketting' division to fund AI investments? you're to push back on that, there are not in fact 5D chess?

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  • [–] 3 points 2 weeks ago

    'AI experiences' go in favor of moar datacenter for AI bros to play with.

    Basically the infrastructure play has started running out of loans, and the market is switching to who can secure the most debt in a stingy market. So moves like this try to mitigate the hit to credit ratings, trying to avoid what has happened to Oracle for example.

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  • [–] 17 points 2 weeks ago (2 children)

    It baffles me that the government is always pushing AI but also dependent on the job market hiring and not laying people off. They are at odds.

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  • [–] 9 points 2 weeks ago

    This is simpler than you think. AI is a bubble. It is a giant bubble.

    Many people, including many government workers, are getting rich right now by riding the bubble. They and their funders have zero interest in worrying about what will happen when it bursts.

    (Also, AI is vaporware. It can't replace workers in huge numbers. So nobody serious is actually worried about that... Of course there are some occupations that have shifted, but far fewer than you would expect.)

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  • [–] 17 points 2 weeks ago (1 child)

    Will this make line go up?

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  • [–] 7 points 2 weeks ago

    Yes, for a short while between firing the employees and then learning why whey were there in the first place. Then the line will go down until further people are fired in the next round. The venture capitalist's ideal company consists only of a CEO and the room cleaner (because some work has to actually be done).

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  • [–] 13 points 2 weeks ago (1 child)

    I heard from a colleague in India that Microsoft laid off ~8000 Indian employees last year (close to 40%). That included contractors. Replaced them all with A.I

    I think that's about to happen here.

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  • [–] 12 points 2 weeks ago

    Is this the innovation capitalism is promoting?

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  • [–] 11 points 2 weeks ago

    Hurry up - need more SRE talent on the open market

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  • [–] 21 points 2 weeks ago (7 children)

    Offering buyouts to 60k people is not the same as looking to remove 60k employees. A lot of those people are not going to take them, and MS has that factor into the number they offered.

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  • [–] 17 points 2 weeks ago (5 children)

    But its also not not the same as looking to remove 60k employees. Right before my company did forced layoffs, they offered voluntary packages like this with the stipulation that if enough people didnt take them, it'd transform into involuntary layoffs.

    They are offering this to 60k employees and should all of them take it, that's 60k fewer employees at the end of the day. Of course it's unlikely for that to happen but not impossible meaning they're prepared to lose all of these people.

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  • [–] 8 points 2 weeks ago (4 children)

    I don't know the details of the microsoft offer, but at another company we had a few of them, and the 'fine print' was:

    • If too many people applied to participate, the company reserved the right to deny applicants
    • If someone was deemed too critical, executives reserved the right to reject individual cases

    So offering to 60k does not mean they actually accept the risk of all 60k leaving.

    More interesting is the logic of a 'buyout'. Now the superficial assumption is that it's better for morale, but as you saw, it's pretty much certain that morale will be hurt by an involuntary layoff action anyway after the buyout. But maybe you could argue the hit was softened by the buyout earlier...

    However, I think the actual goal is to disproportionately get the people in their 60s, the folks that given the right 'nudge' will just nope out into retirement. They would love to do that in layoffs, but historically that has hit age discrimination suits. Whenever we had a farewell celebration in a buyout, the people were mostly people at retirement age.

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  • [–] 3 points 2 weeks ago (2 children)

    There's a more obvious demographic that they'd be cutting. The US government / Trump administration is blocking things like international visas etc, and demanding that people who work on gov contracts be US citizens -- and they've specifically targeted / highlighted Microsoft as a 'problem' on that front. Microsoft hasn't disclosed which regions these 'buyouts' are impacting.

    My guess would be that its largely in places like India, the EU and Canada. Especially as the more US gov control is excerpted, the more data sovereignty pushes get attention, the less business MS projects outside the US.

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  • [–] 2 points 2 weeks ago (1 child)

    They literally did name regions, USA, UK, CAnada and India

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  • [–] 1 point 2 weeks ago

    Sorry, guess I should've been more specific -- they don't say how many in each region, do they? Like I heard that Canada's govt might be inquiring with them, as there are some regulations around mass layoffs etc that may need double checking. Plus Canada's sensitive to any reports of US companies potentially letting go mass amounts of Canadian employees, as a result of the auto/steel industry shit and tariff stuff. So the media here was commenting on how its not yet clear how many of the losses/packages are in which country.

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  • [–] [S] 3 points 2 weeks ago*

    That's what they did with the first VEO, where it was available to anyone who's age and years of service added up to 70. In order it went 15K layoffs, VEO for 70+ which 30% took, then another 5K layoffs after it closed.

    Now it's just everybody on your team if your team is eligible. Managers also weren't informed beforehand as they were included as well.

    With my friend, they got the offer, so did their entire team they talked to as well as their manager and their skip. And that's across Azure, the real money maker, and Teams - CoPilot.

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  • [–] 2 points 2 weeks ago

    It would be kind of entertaining to see what happened if all 60k people accepted the offer, though. I’d be surprised if the company expected more than 10% to do so. Probably even less.

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  • [–] 9 points 2 weeks ago* (last edited 2 weeks ago) (5 children)

    if you work in IT, you really need to think about what kind of job you'll do in the next couple years.

    edit: just to clarify, you won't be looking for a job because AI took it. you'll be looking for a job because AI crashed the economy and took the tech sector with it.

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  • [–] 7 points 2 weeks ago (3 children)

    I worked tech support for 13 years before finally burning out in 2018. So glad I am NOT in tech right now!

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  • [–] 4 points 2 weeks ago (2 children)

    Out of curiosity, what field did you switch to?

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  • [–] 2 points 1 week ago

    personally I'll probably go into some form of product design or manufacturing.

    what that will look like is still entirely dependent on what actually happens.

    I have always enjoyed designing and building furniture or room fillers. since that's a luxury good it's hard to say if there will even be a market for it.

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  • [–] 7 points 2 weeks ago (2 children)

    It makes sense, no one likes any of their products.

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  • [–] 17 points 2 weeks ago

    That would be great for Linux adoption. I'm all in with this news.

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  • [–] 6 points 2 weeks ago

    Their "buy new hardware" move really backfired on them.

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  • [–] [S] 3 points 2 weeks ago

    Since the original post apparently disappeared:

    Oct 26 (Reuters) - Microsoft (MSFT.O), opens new tab said on Monday it is offering voluntary buyouts to about 60,000 employees, or more than a quarter of its global workforce, as the technology giant looks to ​contain costs and help fund its massive AI investments.

    Staffers across the Windows maker ‌would be eligible for the offers, including those working in AI experiences, Copilot, finance, human resources, Xbox and Windows + Devices, a source familiar with the matter told Reuters, requesting anonymity as the matter was ​private. Units such as marketing, commercial business and security will be excluded, the source ​added.

    "This offer gives eligible employees who may be considering a future outside ⁠the company a new choice to make that transition now with support. It also ​gives participating organizations another way to adapt their workforce to changing needs," Chief People Officer Amy ​Coleman said in a staff memo.

    Like other tech giants, Microsoft is spending hundreds of billions of dollars on AI data centers and chips, drawing scrutiny from investors over whether the returns will justify the staggering ​cost. The company, slated to report first-quarter results after markets close on Wednesday, has ​forecast $175 billion in capital expenditures for the 2026 calendar year.

    Microsoft had 223,000 full-time employees globally as of June ‌30, ⁠2026, according to its annual filing.

    Shares of Microsoft, which had risen about 10% this year, were up about 1% on Monday. The development was first reported by Business Insider.

    The company earlier this year offered voluntary buyouts to about 7% of its US workforce, or about 9,000 employees.

    In ​July, Microsoft announced it would ​cut 4,800 jobs, ⁠or about 2.1% of its global workforce, overhauling its Xbox gaming business and divesting up to five studios as it looks to boost ​returns after years of heavy investment in the division.

    "This offer will ​be available ⁠to eligible employees in participating teams in Canada, India, the United Kingdom and the United States at level 70 and below," Microsoft said on Monday.

    The company said it was a time-limited, voluntary ⁠program ​and built on insights gained from a previous voluntary ​retirement program. The eligible employees will receive details within the next few hours, it added.

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  • [–] 2 points 2 weeks ago (1 child)

    and they want to shuttle XBOX to shovel more AI slop.

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  • [–] 1 point 1 week ago

    Xbox is a fraction of Microsoft's total revenue. The golden goose is corporate Windows and Office, 85-90% of company profits. Sometimes seems they'd be better off just dropping the whole product.

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