Microsoft May Have Gotten Rid of 8% of Its Workforce This Month
The prominent Microsoft boosters are reporting (as of hours ago) that "Xbox revenue drops 10 percent" and other sites say "Xbox Content & Services Revenue Falls 10% YoY Amid Layoffs" (in the headlines, in both cases). We wrote about these 'results' last night.
The elephant in the room is the secret debt, which is real but suppressed by the media (it is, after all, being paid to participate in the slop hype, which makes is a stakeholder).
Microsoft's secret layoffs were mentioned two days ago ("At Microsoft, PIPs Are Sometimes Known as "LITE" (a Silent Layoffs Legal Hack or a Shrewd Workaround to Skirt WARN Act)") and an insider wrote about it: "Microsoft layoffs: Most will get LITE and no severance"
Reading through comments, one person explains the percentages: "The 2.5% layoff the article discusses will get severance. The ~5% or so with low perf ratings this year won’t get severance. Though a lot of them will be offered a choice of PiP or a voluntary buyout package that is similar to severance but not as good."
For those who don't know what LITE is, someone has explained: "Lower Impact Than Expected. It is the lowest performance rating and typically moves you to a PIP."
Somebody reckons that Microsoft got rid of about 8% of its workers this month: "It’s in addition to a voluntary retirement package and aggressive performance management. I’d guess ~8% total similar to last year but less layoffs more firing."
This will go on next month as well.
The next comment says: "Such spin for Wall Street. Microsoft wants to show they are trimming the less desirable employees and it will cost them nothing."
It's hard to know what's really going on because there's no transparency due to NDAs. █