Are Microsoft’s Voluntary Buyouts a Sign of What’s to Come?

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Are Microsoft’s Voluntary Buyouts a Sign of What’s to Come?

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Microsoft’s offer of voluntary buyouts to 60,000 employees highlights a growing trend: profitable companies cutting labor costs as they invest heavily in AI. Buyouts can

On October 26, Microsoft offered voluntary buyout packages to 60,000 employees—one quarter of its global workforce. It’s part of a growing trend of profitable companies taking dramatic steps to cut labor costs, but the tool—voluntary buyouts—is hardly new. Wayne Cascio, now a Distinguished University Professor Emeritus at the University of Colorado Denver, has been studying how companies downsize workers since the 1990s, when he wrote the book Responsible Restructuring: Creative and Profitable Alternatives to Layoffs.