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Microsoft to Cut 9k Workers in Second Wave of Major Layoffs

(www.bloomberg.com)
209 points htrp | 12 comments | 02 Jul 25 13:26 UTC | HN request time: 1.289s | source | bottom
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idkwhattocallme ◴[02 Jul 25 15:02 UTC] No.44444622[source]▶
For the most part, I'm indifferent to layoffs. Companies over hire and then course correct. It's part of the game. But for MSFT, it rubs me the wrong way. In the past 5 years, their stock has soared (150% on stock and doubled in valuation). They are insanely profitable ($82B profit). They are diverse (no existential business risk). The fact that they are unceremoniously laying off 30K of the people that helped them get there drives home it's just a paycheck, do your job, but know it can and will end when convenient for the company. I know folks will argue, low performers, but really. This "productivity apps" company hired them, onboarded them, made $82B in profit, surely they can figure out how to uplevel folks. Also how do you have a layoff every couple of months for 3 years. Thinking about the middle class in the previous generation, it was unions that effectively ensured a labor job meant a secure future. I wonder if that's the solution (again).
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1. wonderwonder ◴[02 Jul 25 16:31 UTC] No.44445705[source]▶
The issue is they are laying off US workers and then importing Indian workers to replace them via 3rd party contractors. I saw a post on X today which essentially said "Ai will not replace your job, an Indian with Ai will replace your job" - this was posted by an Indian and he was completely right. Microsoft is actively laying off people with 150k salaries and replacing them with offshore workers earning a 10th of the salary.

At the same time our politicians appear to be looking everywhere for a solution to increasing US jobs except for right where the issue is. Everyone else sees it but our politicians are willfully blind.

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2. trod1234 ◴[02 Jul 25 16:54 UTC] No.44446004[source]▶
That is one of the issues, yes.

The main issue though is one of demographics.

Like Japan, we have insufficient young people to do the jobs and produce what's needed to support the old.

Worse, the old have utilized money printing and their privileged position to enrich themselves, and in the process it is tearing the country apart, and through economic manipulation force conscripting the young at suppressed wages to pay their debts off (i.e. social security).

Thomas Paine would have a lot of similar things to say if he were alive today, specifically about dead men ruling.

The economics given such lopsided movement cause chaotic disruption and deflate and are unsustainable.

You are wrong insofar as they'll be earning a 10th of the salary. That may happen upfront, but in terms of purchasing power it will reach parity much more quickly given the macro monetary dynamics going on.

When reading history, I could never imagine how bad it would need to get to make a multi-generational citizen abandon their home country and immigrate elsewhere.

I have my answer today. They do so when there is no reasonable path to a survivable future.

There are times where a reasonable person can see and know everything will burn, because there is nothing that can stop it, and the only thing you can do is remove yourself and your family from the path of that burn.

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3. wonderwonder ◴[02 Jul 25 17:19 UTC] No.44446324[source]▶
While I agree with your overall point, I don't think the current issue with US jobs being outsourced is due to demographics. I think its simply one of cheaper wages. The fact that they are actively laying off US workers proves that there are existing US workers that can and have been doing the job. They are letting them go though so as to boost their bottom line to drive "shareholder value". This is an entirely self inflicted issue separate from the demographics issue that is affecting the west as a whole. We have more than enough qualified people willing to perform the tech jobs that the companies are outsourcing.
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4. darth_avocado ◴[02 Jul 25 17:51 UTC] No.44446734[source]▶
> Microsoft is actively laying off people with 150k salaries and replacing them with offshore workers earning a 10th of the salary.

I know the talking points on HN like to portray Indian developers as cheap, low quality labor, but contrary to popular belief, they aren’t getting workers for $15k. A Median senior developer earns almost $90k in India in Microsoft.

https://www.levels.fyi/companies/microsoft/salaries/software...

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5. triceratops ◴[02 Jul 25 18:10 UTC] No.44447005[source]▶
How are they "importing" workers and still keeping them "offshore"?
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6. wonderwonder ◴[02 Jul 25 18:29 UTC] No.44447201[source]▶
The are doing both friend. I am currently the last US employee on my project with a fortune 250 company. Started off with 60 devs. Half onshore, half offshore. Now I am the last on shore dev. Still 60 devs total
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7. mathverse ◴[02 Jul 25 19:04 UTC] No.44447575{3}[source]▶
It's not only about cheaper workers but an army of controllable drones.
8. triceratops ◴[02 Jul 25 19:10 UTC] No.44447629{3}[source]▶
So they've only offshored. Not imported.
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9. wonderwonder ◴[02 Jul 25 19:11 UTC] No.44447648{4}[source]▶
My company yes. Other companies do both
10. wonderwonder ◴[02 Jul 25 19:13 UTC] No.44447674[source]▶
To be clear, I never painted indian devs as low quality. Many of the ones I work with are very smart, skilled people
11. WillPostForFood ◴[03 Jul 25 00:14 UTC] No.44450236[source]▶
You can see the Microsoft H1B Software Engineer salaries at the HQ in Redmond.

https://h1bdata.info/index.php?em=microsoft&job=software+eng...

What do you think the salary would be for a US employee that those $101k H1B Software Engineers replaced? They obviously aren't saving 90%, but maybe 50% 33%?

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12. timtom123 ◴[03 Jul 25 02:55 UTC] No.44451205{3}[source]▶
It isn't just the $ savings. It is indentured servitude. I have more than one friend that quit the day they got their green card.