Most likely because some person/s bonuses are tied to cost cutting or "productivity" targets that can be achieved through the lay-offs. Answer from aidos_86 on reddit.com
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Reddit
reddit.com › r/layoffs › fired from microsoft
r/Layoffs on Reddit: Fired from Microsoft
October 18, 2025 -

TLDR - I got fired instead of laid off. big tech is the devil.

Using a new account as I don’t want to dox myself. I was fired by Microsoft last month, a week before bonuses were to be paid. My manager scheduled a call titled “rewards discussion” where I was expected to be told what percent bonus I’d be getting. I was on LITE (what MSFT calls PIP) the first half of the year but I was taken off this in my last review with stellar feedback where he told me (and documented) I’d accomplished everything asked of me including measurable impact. His manager had previously told me if I was able to get off of LITE I shouldn’t be worried about long term ramifications as it would demonstrate impact and commitment. So I was expecting I’d get maybe 60% of my bonus eligibility and figured there was a chance I might be laid off with severance given all the layoffs they continue to have. I had 26 years tenure with a company that was acquired by Microsoft in 2022, and per my employment contract this tenure would count for any severance calculations.

As it turned out not only was I not getting bonus but he told me in this rewards discussion that I was being let go and also would receive no severance, and I am banned from working for Microsoft for 2 years. Totally blindsided me and my access was cut off immediately so I didn’t even have the chance to contact colleagues I’d worked with for 26 years. He offered no further explanation. I was prepared for the potential of getting laid off, but not this. It’s at will employment so I’m not guaranteed anything and there doesn’t seem to be anything I can do. I did have a subsequent call with HR that I pushed hard for (they initially ignored me) where they explained the reason I was fired and wasn’t being given any bonus or severance was because my manager gave me a 0 for annual rewards indicating I’d had no impact. After spending the last 6 months killing myself to demonstrate the impact necessary to get off of LITE I feel totally betrayed. I am sure my management team did this in order to repurpose my budget for others on the team as I do think the feedback in my last evaluation was representative of my contribution.

I can’t understand why they would take me off LITE and give me positive feedback only to turn around and give me a 0. I also can’t understand how a single poor rewards score from a manager I’ve worked for under a year warrants no severance after 26 years of service. I am the sole provider for my family, have a kid in college and a mortgage, and as we were acquired it’s not like I have a ton of money in the bank from years of working at Microsoft. It will obviously take me some time to find a new job where I’ll have to start all over, and given the current job market who knows when that might be.

I can understand why people snap. They essentially lied to me, blindsided me, and left me hung out to dry. As far as I’m concerned they stole from me, their “valued” employee. It’s completely inhumane and unethical, and totally against their stated values. I have gone from respecting Satya Nadella and Amy Hood to seeing them as the embodiment of the devil himself. I would understand if they decided I wasn’t a good fit for the team and let me go with a bonus indicative of my impact and severance in-line with my tenure, but this is straight up evil and assuming many others have received the same treatment likely they are skirting having to report even more layoffs than they already have.

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Reddit
reddit.com › r/artificialinteligence › what is the real explanation behind 15,000 layoffs at microsoft?
r/ArtificialInteligence on Reddit: What is the real explanation behind 15,000 layoffs at Microsoft?
July 6, 2025 -

I need help understanding this article on Inc.

https://www.inc.com/jason-aten/microsofts-xbox-ceo-just-explained-why-the-company-is-laying-off-9000-people-its-not-great/91209841

Between May and now Microsoft laid off 15,000 employees, stating, mainly, that the focus now is on AI. Some skeptics I’ve been talking to are telling me that this is just an excuse, that the layoffs are simply Microsoft hiding other reasons behind “AI First”. Can this be true? Can Microsoft be, say, having revenue/financial problems and is trying to disguise those behind the “AI First” discourse?

Are they outsourcing heavily? Or is it true that AI is taking over those 15,000 jobs? The Xbox business must demand a lot and a lot of programming (as must also be the case with most of Microsoft businesses. Are those programming and software design/engineering jobs being taken over by AI?

What I can’t fathom is the possibility that there were 15,000 redundant jobs at the company and that they are now directing the money for those paychecks to pay for AI infrastructure and won’t feel the loss of thee productivity those 15,00 jobs brought to the table unless someone (or something) else is doing it.

Any Microsoft people here can explain, please?

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Reddit
reddit.com › r › microsoft
Microsoft
November 21, 2025 - Layoffs as a Management Tool Layoffs are no longer a last resort. They’ve become a tool to trim “low performers” and employees targeted, envied, or resented by management. Mental Health Matters We must stop normalizing environments that erode psychological safety. No paycheck is worth chronic stress and emotional manipulation. #Microsoft ...
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Reddit
reddit.com › r › Layoffs
Layoffs: Job Loss And Recovery
October 10, 2025 - While we understand people have political view points, this sub-reddit is specifically about Layoffs.
Find elsewhere
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Reddit
reddit.com › r/layoffs › i was part of the most recent microsoft layoffs. the company culture shifted heavily when ai became monetized.
r/Layoffs on Reddit: I was part of the most recent Microsoft layoffs. The company culture shifted heavily when AI became monetized.
August 1, 2025 -

I was in M365 Core working on the Copilot Data Platform team which basically is the infrastructure that Copilot runs and gets its data trained from.

I started in 2022 before Copilot or even ChatGPT were even a thing really and the company I started at vs the one that I ended with is like two completely different entities.

Before 2024, the growth chart for a SWE at the company was a lot more holisitic, focusing on growing through people skills, technical understanding and having my manager help me get to the next level. I managed to get to an L60 which is one off from SWE II, but right after I promoted the company shifted into this AI-driven mindset where the growth chart changed to start emphasizing performance metrics and throughput. The problem for me was that it was hard for me to find ways to actually improve these metrics because of our team was heavily DevOps focused with only a few people on my team working on features that could actually generate meaningful performance metrics.

Every single 1:1 my manager was asking me how much I was using the AI tools we have at our disposal, how many PRs I was completing a week, how many PR reviews I was doing a week, and pushing me to do talks on my experiences using AI as a developer. My manager even acknowledged that a recurring complaint from our team was the amount that we don’t get to code stuff compared to DevOps related work which cannot be factored into PR metrics.

Looking back, it is crazy that once Copilot surfaced as a CLEAR cash cow for the company, they went into overdrive into this performance-based mindset.

I’m not writing this to bash on anyone or anything because I genuinely did enjoy my time there, but I’m not gonna act like Copilot/AI hasn’t shifted the company into a less holistic version of itself. The main thing I’m sad about is that I lost like $30k of stock that was part of my signing agreement and with how these financial reports are coming out that would have been so much damn money to sit on for the next 3-5 years since Microsoft is doing incredibly well from a business standpoint with no signs of slowing down.

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Layoffs.fyi
layoffs.fyi › home
Layoffs.fyi - Tech Layoff Tracker and DOGE Layoff Tracker
October 15, 2025 - [LIVE] Tracking all tech startup layoffs — and lists of employees laid off — since COVID-19 was declared a pandemic. This page is constantly being updated.
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Business Insider
businessinsider.com › business insider › careers › tech › the list of major companies laying off staff this year includes verizon, ibm, amazon, starbucks, american airlines, and more
The Layoffs List of 2025: Verizon, Meta, Amazon, and More - Business Insider
5 days ago - Companies such as Verizon, Starbucks, Meta, Microsoft, and UPS have trimmed staff this year. Amazon joined the fray in October, announcing that it would cut roughly 14,000 staff. See the list of companies letting workers go in 2025.
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Reddit
reddit.com › r/layoffs › laid off from microsoft is a blessing
r/Layoffs on Reddit: Laid off from Microsoft is a blessing
July 29, 2025 -

Hey everyone want to share my layoff story, SDE-2 working with Microsoft till May 2025 and I got laid off during first round off layoffs (oh yeah there was one before July layoffs). Its my first layoff in my 6 years SDE career. My life turned upside down as I have so many things going on and to make matters worse I am on Employment Visa in the US and got so depressed for the first few weeks with no direction. Then I accepted for what it is and started giving interviews which is not fun and I am not at all interview ready and companies these days expect the candidates to be have every skill thats known to a human being :). I faced rejections back to back and I kept grinding leetcode and system design for 3 months which is 100 worth. After 3 months of consistent prep I recently landed job with another FAANG company which pays a lot ... I mean a lot better than what I got paid at Msft. If someone is laid off don't lose hope, Job market is tough but keep your heads down and put the consistent effort much better offers are waiting for you than your previous company.

Top answer
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That’s great! I’m happy for you. I like to see people succeed in life. I don’t like to see people fail. When I read the word “blessing” in your title, I thought of my own situation and how I was able to see it as a blessing after some time. I was outsourced from a startup after four years working night and day for an entry level salary. I didn’t complain, I was happy to still be writing code in my late 50s. I wanted to worked with the outsourcers. We got along well. I had helped save the company after it lost all of its customers at the beginning of the pandemic. I was let go the same week they closed on a large round of funding, four years later. I was completely crushed. So, at 59, I decided to retire, even though my wife complained bitterly about the idea. I had a year of reading literary fiction and playing the piano. Then, I got diagnosed with pre-diabetes. Shortly after, I was diagnosed with prostate cancer as we were preparing to move to France, and had to have surgery. I began to think of being outsourced, and my year of rest and relaxation, as a blessing and wondered why. I ran across this TED talk on YouTube in which a researcher explains that the brain synthesizes happiness, it creates it. Bad things happen to us and we convince ourselves that they’re good things, and that what happened was all for the best. It’s a useful survival skill. Here is that video entitled “The Surprising Science of Happiness,” https://youtu.be/4q1dgn_C0AU?si=TTzFA6wx4t_QM43c I may yet see my cancer diagnosis as a blessing. I concluded that I didn’t want to move to France because of my poor langage skills in French and that I preferred the idea of moving to Dublin. My French wife is disappointed but English has been her primary language for 25 years and she loves Ireland too. So, good luck in the future. I wish you all the best. P.S. One a small thing, you “lose” hope and you let “loose” an animal. Put in a few paragraph breaks to help with readability. Otherwise, your English is very good. Where are you from?
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Congrats!!! pls don’t respond to rage bait comments. What’s the point?
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Reddit
reddit.com › r/microsoft › microsoft layoffs & toxic management: a dangerous culture behind the scenes
r/microsoft on Reddit: Microsoft Layoffs & Toxic Management: A Dangerous Culture Behind the Scenes
July 1, 2025 -

In the wake of another round of layoffs at Microsoft, it’s time to talk about something deeper than numbers: the human cost of toxic management.

Employees aren’t just being let go — many are being driven out by a culture of psychological pressure, unrealistic expectations, and emotionally manipulative leadership.

“Growth mindset” vs. Gaslighting
What’s often sold as high-performance culture masks deeply unhealthy management practices. Deadlines are weaponized. Feedback becomes intimidation. “Accountability” means blaming the most vulnerable.

Psychological Pressure is Not Leadership
Many managers are pushing their teams to burnout under the guise of “excellence.” This isn't just poor leadership — it's emotionally abusive. Employees report sleepless nights, anxiety, and a constant fear of retaliation for speaking up.

Layoffs as a Management Tool
Layoffs are no longer a last resort. They’ve become a tool to trim “low performers” and employees targeted, envied, or resented by management.

Mental Health Matters
We must stop normalizing environments that erode psychological safety. No paycheck is worth chronic stress and emotional manipulation.

#Microsoft #Layoffs #ToxicLeadership #MentalHealth #CorporateCulture #Burnout #TechIndustry

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Reddit
reddit.com › t › microsoft_layoffs
Best Microsoft Layoffs Posts - Reddit
Elder Scrolls Online devs detail “inhumane” Microsoft layoffs as Xbox expects the “carcass of workers” to “keep shipping award-winning games ... A Reddit community dedicated to The Elder Scrolls Online, an MMO developed by Zenimax Online. ... Elder Scrolls Online devs detail ...
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Intellizence |
intellizence.com › home › insights › layoff/downsizing › companies that announced major layoffs and hiring freezes
Companies that announced Major Layoffs and Hiring Freezes | Intellizence
3 days ago - Microsoft’s joint venture with Wicresoft will cease its China operations, leading to the layoff of about 2,000 staff. The move is in line with Microsoft’s decision to stop outsourcing after-sales support in China to Wicresoft.
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Reddit
reddit.com › r/layoffs › microsoft rif laid off employees' eligibility for rehire
r/Layoffs on Reddit: Microsoft RIF Laid off employees' eligibility for rehire
September 26, 2025 -

I was laid off from Microsoft in May 2025 with my employment officially ending in July 2025. My severance clearly stated that I’m eligible for rehire.

However, it seems the FY’25 Rewards were published recently (managers finalize them by June 30), and my entry shows 0 rewards, likely because I was no longer part of the rewards cycle after being laid off. Now, a recruiter told me that because of this “0 Rewards” entry, I’m showing up as not eligible for rehire, and they had to revoke my verbal offer.

I’m trying to understand if this is a system or HR error, since:

  • I had 100% rewards in FY’24,

  • My severance letter explicitly says I’m eligible for rehire, and

  • My termination was due to RIF, not performance.

EDIT: I’ve already opened a ticket with HR Assist and reached out to my former manager (no response yet).
Any advice on what else I can do to escalate or fix this?

UPDATE: HR Assist confirmed that I’m eligible for rehire and for FY’25 rewards. They also corrected the eligibility status on my profile (I received a screenshot). The recruiter verified that they can now see my eligibility but said the offer had already expired.

However, they still haven’t provided any details on how my status was changed or who updated it, despite my repeated requests and citing my right to full disclosure of all records related to my employment.

Does anyone has any recommendations for employment lawyers?

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Reddit
reddit.com › r/microsoft › former and current microsofties react to the latest layoffs
r/microsoft on Reddit: Former and current Microsofties react to the latest layoffs
April 26, 2025 - A subreddit dedicated to Microsoft's Suite of Services, Products, and Games. ... There is a perpetual climate of fear inside the company. Instead of ripping the band aid off and being done it’s a continuous parade of monthly layoffs causing many to be fearful.