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On October 26, Microsoft offered about 60,000 employees a buyout. That is roughly 27% of its 223,000 workers, and, honestly, the headlines read like a layoff notice. A layoff is not a buyout.
It is not a layoff. Microsoft expects fewer than 5% of those eligible to accept, which means fewer than 3,000 departures. The spring retirement program drew more than 30% of roughly 8,750 eligible employees, about 2,600 people. So you have to wonder why they’re making such a big deal of it.
No matter the reason, your clients will not do the math. They saw “27%” next to “AI” and drew the conclusion you knew they would. Decades of clever Microsoft strategies have taught me they may be right…
So why did Microsoft do it? Each of the way-too-many commentators has an answer, and, another surprise, their answers do not agree. To evaluate and perhaps even validate their answers, we looked at how close each one is to Redmond and Satya Nadella.
