Microsoft: Our August 2026 Layoffs Are Not Layoffs Because... Reasons

At Microsoft they call it "buyouts" or "LITE". At IBM "PIPs" or "next step" or "RAs". They make up words and names. They invent acronyms and buzzwords or misleading categories. Anything to avoid the "L" word ("layoffs", not "losers").
So this month some people say they lost their jobs at Microsoft, so Microsoft rushed to pretend "it ain't happening!"
It's something we covered last month, they frame their staff as "contractors" to avoid obligations and to call terminations/layoffs "end of contract".
Asked by media about these August layoff, some went along with the spin, e.g.:
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Contractors lose jobs but Xbox source says no layoffs of staff at Halo Studios [Ed: Microsoft loophole, secret layoffs]
A number of game contractors said their lost their jobs after Halo Campaign Evolved shipped on July 28. However, I have been told there have been no layoffs among internal staff employed at Halo Studios.
Halo Studios (formerly 343 Industries) worked on the remake of the classic Halo: Combat Evolved game that shipped 25 years. Built on the new Unreal Engine 5 technology, the game looks great and is expected to do well. (I loved the game).
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Halo Studios Suffers Job Losses Shortly After Campaign Evolved Launch
A "source" at Xbox has apparently been in touch with GamesBeat to clarify what's going on here, telling the outlet that these job losses weren't actual "layoffs", but rather "external contractor shifts that happen after a game ships".
That's like IBM making "spin-offs", then pretending that no layoffs are happening. They also pass the debt to these "spin-offs". Debt-loading is another, related problem. █
Image source: BMW Motorcycle in antique store in Buenas Aires
