Microsoft is not replacing 27% of staff with AI

No, Microsoft is not firing 60 000 people because of AI. The press release is corporate marketing, interpreted incorrectly.

In fact, Microsoft only said that 60,000 employees are "eligible" for the buyout program. This doesn't mean all will take it. The real number will likely be 3-4 times less. Maybe 10-20k. Out of a total of 295000 employees. So no, Microsoft doesn't fire 27% of their workforce, and doesn't replace them with AI.

And even if Microsoft would fire 10-20k of employees: this would be not news, and it would not mean they would necessarily decrease their total workforce. 

Because they do this every year, before publishing their financial results.

Most big corporations announce these "cost reductions to increase efficiency". Shareholders like this, because it means higher profits and dividends. 

The interesting mechanism is that they fire 5-10% of staff, and hire others. 

Microsoft has announced layoffs almost every year for the past 10 years, with peaks in 2023 and 2025 (up to 7%). They announced 11000 in 2023, and 15000 in 2025, but still ended pretty much the same.

Over 2016–2025, Microsoft announced roughly 40,000–45,000 layoffs in total. Still, their staff grew from 116000 to 225000.

Yes, they always say it's for increasing efficiency and lowering costs. Now: with AI.

These redundancies often overlap with the 10% efficiency rule of Jack Welsh (you know, from the great GE. It's a mandatory case study in all MBA programs across the world). He said that the bottom 10%, the low performers, should always be fired, every year. And replaced with new, better employees.

Of course there are also companies who really reduce their workforce. Some even die. 

But don't believe every corporate press release. First look at their stock prices.