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AnimusFlux t1_j4vexa5 wrote

MS added 40k jobs in 2022 alone, so this is really a pretty small correction. It's crazy how fast hiring has ramped up in tech during the pandemic.

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aquarain t1_j4vfu6o wrote

Didn't they used to cull the bottom 10 percent every year under the stack rank system?

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AnimusFlux t1_j4vhd4b wrote

Not sure about Microsoft, but laying off the lowest performing 2-5% each year is a pretty standard practice in tech. It allows managers and HR to avoid the lengthy one at a time performance management and firing process which can easily take over a year while also giving folks 2-to-4 months severence so they have time to find a new job. With ~3% unemployment in tech and Microsoft on their resume, these folks will land on their feet.

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Welcome2B_Here t1_j4warx4 wrote

If anyone believes layoffs necessarily target "low performers," I have a bridge to sell.

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AnimusFlux t1_j4we9n0 wrote

If you've managed more than 20 people in your life, I'm gonna go ahead and guess at least one (5%) of them wasn't a good performer. That doesn't mean they're a bad person or that they don't deserve a job, it just means they're not doing well at the job they were hired for. Someone who is truly unable to do their job makes everyone's lives harder and they'd probably be better off doing something else in the long run.

I can also tell you from experience that loads of managers lack the grit required to fire even the most toxic employee. If you've ever worked with someone who you wished would just get fired, then maybe you'd have been better off if your company practiced occasional layoffs. If you've never worked with someone like that... are you hiring?

Edit: I think I misinterpreted your comment. Of course, layoffs don't only target low performers and typically have a lot more to do with corporate restructuring. Low performers just get bundled in to kill two birds with one stone.

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Welcome2B_Here t1_j4wg3f2 wrote

Of course layoffs naturally include low performers, but they also include employees across the board. The highest weighted metric is usually compensation relative to what's perceived as the "market" rate, which is also a sliding scale and open to interpretation.

This idea that these types of layoffs are simply "trimming the fat" just doesn't jibe with my first-hand experience, nor the second-hand experience learned through other employees. I've seen some of the best performers get axed while the sycophants and low performers get to stick around.

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Youvebeeneloned t1_j4yowa4 wrote

Considering the yearly average for tech is 11-13%... then yeah its probably targeting low performers given its performance review time for employees at companies whose fiscal match the calendar year.

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djordi t1_j4xqs70 wrote

Stack ranking had disastrous long term effects because different divisions had different metrics. Before MS got rid of it there was an incentive for backstabbing politics and employees making sure they were in divisions with under-performers to shield themselves.

It's kryptonite to team based development.

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datastuff1 t1_j4vl1ui wrote

It’s almost like the problem in tech is exactly this.

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thruster_fuel69 t1_j4vpji0 wrote

There's too many possibilities in what he said to assume what you mean. I'll say though, tech interviews and recruiting in general is broken. I say this as a senior engineer, that generally we are not selecting properly for appropriate skills.

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datastuff1 t1_j4vu64c wrote

Correct. There’s not enough emphasis on business architecture. Layoffs are preventable.

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cluckyblokebird t1_j4vwak5 wrote

Luckily they have "independent advisors" to help us out with all the bugs.

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eldedomedio t1_j4vtjzk wrote

Microsoft gross profit for the twelve months ending September 30, 2022 was $138.619B, a 14.21% increase year-over-year.

ChatGPT will fill in for those employees. It did such a great job for CNET.

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pulse14 t1_j4ykpek wrote

Microsoft increased their workforce by 25% last year. Removing 5% this year would put them in line with their growth rate.

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Youvebeeneloned t1_j4yopqy wrote

Keep in mind 5% attrition aint even remotely close to the national average for tech.

my LAST company had something like a 12% turnover rate... which is roughly average.

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Whole-Spiritual t1_j4ztrb8 wrote

A $1.2B restructuring charge means they get to take $1.2B that would have hit Adjusted EPS, the main # driving executive bonuses & stock rewards, and Wall Street headline #, and put it in non-recurring items thereby making their headline # and bonuses pop amidst slower revenue than planned.

Many don’t realize this. This was par for the course when I first as in mgmt at a mega cap (S&PGlobal). We saw there was risk of not hitting the 2x multiplier on eps for beating it, and we’d bludgeon teams to get the # where it needed to be.

This is why I really urge people to start their own thing if they can. It lets you take more control over your life and livelihood.

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WhatTheZuck420 t1_j4welzl wrote

Nadella using both hands to exaggerate the size of his dick

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Relevant-Dish6846 t1_j4xaxhn wrote

They invest U$10B on Openai. That's the way how AI can take your job.

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RudeRepair5616 t1_j4y6orf wrote

Which employees are these, the 1-st level chat support staff? ('tech' cf. 'tech sector')

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darth_meh t1_j4xznb9 wrote

People talk about how awesome Nadella has been for Microsoft, but having to layoff 10K people is a pretty epic failure in my view.

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Youvebeeneloned t1_j4ypelo wrote

5% is not even the expected national turnover rate for tech...

10k is a lot... unless you forget that literally means they have 200,000 employees and THATS why it seems like a lot.

5% at a more average size company is only 200-300 people. Every company I have worked for typically has 20-30 staff rollover a month.. sometimes more between firings, retirings, and leaving to a new job.

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Kyanche t1_j4yy25x wrote

I still think it's really shitty management that you have to have "seasonal" firings like this. Those things should be done on a case-by-case basis with a proper review process.

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darth_meh t1_j4zm9lw wrote

This isn't typical, though. These are people who were hired under his "leadership" and are now being let go due to no fault of their own. In the grand scheme of things, sure, 10K may not be a lot, but I doubt that will give the families impacted by these layoffs much consolation. It's crazy that we've normalized mass layoffs and don't hold executives accountable for destroying people's lives.

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Youvebeeneloned t1_j50o5dp wrote

>These are people who were hired under his "leadership" and are now being let go due to no fault of their own.

Welcome to being an adult in a white collar job.

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Travelerdude t1_j4v8b0z wrote

Terminator future confirmed.

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ImUrFrand t1_j4y33iz wrote

Microsoft still trying to buy in $10 billion worth on ChatGPT.

Fire your employees, and buy an AI to do their jobs... classy.

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