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

It’s been a tough year for tech workers. Some 92,000 employees They were laid off from technology companies cut overhead reduce costs and invest heavily in artificial intelligence.

Meta announced It announced Thursday that it plans to lay off 10% of employees, or about 8,000 employees, to improve efficiency and offset AI spending. The social media giant also plans to leave 6,000 vacant positions vacant.

Microsoft Moreover announced It plans to reduce its workforce on Thursday but is taking a different approach: an initial buyout of experienced workers. The company is offering voluntary separation to 7% of its U.S. workforce (more than 8,500 employees) whose years of service plus age total 70 or more.

In the past, Microsoft has not hesitated to lay off employees and We laid off 15,000 people last year. But Domenique Camacho Moran, an attorney and partner at employment law firm Farrell Fritz, said management is embracing an increasingly common trend of offering people voluntary separations rather than firing them. His firm represents Fortune 500 companies, major universities and various middle-market businesses.

Buying out is a way to support good, loyal employees and avoid the devastating blow of eventual layoffs. By contrast, layoffs can be more complex and require an evaluation of each employee’s skills and performance to avoid the risk of litigation, Moran said.

“The voluntary redundancy option gives the employer the ability to say, ‘This isn’t about us not thinking you’re doing a good job, if you do, it’s time for me to move on. I’m going to encourage you to do that because we need to reduce some staff,'” he said.

The growing popularity of purchasing is driving businesses to decide to purchase needing fewer employees According to Moran, due to artificial intelligence and financial pressures.

Microsoft is expected to invest $145 billion in capital spending this fiscal year, part of a $700 billion capital spending wave for 2026 from major tech companies vying to lead in the AI ​​space.

“What they’re trying to do is make sure they run leaner and more efficiently,” Moran said of Microsoft. “They realized that the people they had were people doing the jobs they needed, perhaps at very high prices.”

Microsoft declined to comment on the acquisitions.

Employee’s choice

He said it could be attractive to those on the other end of buyouts, employees looking to transition, underperformers who fear being fired or people who think they can find another good job. Employees can take advantage of waiting periods to find a different job before deciding to leave on their own terms.

“Our hope is that this program gives eligible individuals the option to take the next step on their own terms with generous company support,” said Chief Human Resources Officer Amy Coleman. wrote in a memo sent to employees Thursday. Eligible Microsoft employees and executives will receive details of their purchase plans on May 7, and employees with a sales incentive plan cannot participate.

Some companies say the quiet part out loud. Last year, Google proposed acquisitions He appealed to U.S. employees in certain teams, including Google’s unit that runs search, advertising and commerce, and made clear that this was an opportunity for underperforming employees to step up.

“I want to be very clear: If you’re excited about your job, energized by the opportunity, and performing well, I really (really!) hope you don’t take this! We’ve got ambitious plans, and tons of plans to get done,” Google senior vice president Nick Fox wrote CNBC reported this in a note. “On the other hand, this VEP offers a supportive outlet for those who do not feel aligned with our strategy, do not feel energized by their work, or are having difficulty meeting the expectations of their role.”

This story first appeared on: Fortune.com