More than 90,000 tech workers have been laid off this year. But here's why companies like Microsoft are offering voluntary buyouts instead | Fortune

"The voluntary exit option gives the employer the ability to say, 'it's not about the fact that we don't think you're doing a good job, but if you're thinking about it's time for me to move on. I'm going to incentivize you to do that because we need to cut some staff.'"

"A buyout is a way to support good and loyal workers and avoid the devastating blow of being laid off while ultimately cutting jobs."

"The growing popularity of buyout speaks to businesses deciding they need fewer employees because of AI and financial pressures."

Tech companies have laid off 92,000 employees as they cut costs and invest in AI. Meta plans to cut 10% of its workforce, while Microsoft is offering voluntary buyouts to 7% of its U.S. workforce. This approach aims to support loyal employees and avoid the complications of traditional layoffs. The trend reflects a shift in business strategies due to financial pressures and the need for fewer employees as AI becomes more prevalent. Microsoft is also set to invest significantly in capital expenditures in the coming years.

Read at Fortune