According to Business Insider, Microsoft conducted multiple rounds of layoffs affecting thousands of employees throughout 2023 and 2024, including 6,000 workers in May and another 9,000 in July after earlier performance-based cuts of nearly 2,000. The laid-off workers interviewed had tenures ranging from a few years to over three decades, with 60-year-old Mike Kostersitz being among those cut after 31 years despite positive performance reviews. Microsoft claims most cuts were intended to reduce management layers and streamline operations rather than being performance-based. The experience has shattered any sense of job security these former employees once had, with many caught completely off guard given Microsoft’s position as the world’s third-most valuable company.
The great flattening is real
Here’s the thing that really stands out: Microsoft used to be known for its “country club” culture, but that era appears to be over. Leaders reportedly worried the company had gone soft, and now we’re seeing the consequences. This isn’t just about Microsoft either – they’re part of what’s being called the “Great Flattening” alongside Amazon, Meta, and Google. Basically, companies are viewing employees as more interchangeable than ever before. And when you combine that mindset with pressure to operate leaner thanks to AI efficiencies, you get a perfect storm for job insecurity.
How laid-off workers are adapting
The responses from these former Microsoft employees reveal some fascinating survival strategies. Eduardo Noriega spent nearly a decade building a staffing firm on the side after realizing job security wasn’t real back in 2009. By the time he was laid off in May, he was actually earning more from his side business than his software engineering job. Meanwhile, Deborah Hendersen took the networking route – she immediately connected with other laid-off colleagues through a Discord chat where they shared opportunities and supported each other. That network ultimately helped her land a UX researcher position at Meta by August. Both approaches show that in today’s environment, relying solely on your employer is becoming increasingly risky.
The new hiring reality
Now here’s where it gets really concerning. The career advisors Microsoft provided to laid-off workers are telling people like Mike Kostersitz to “de-age” their resumes by removing work from the 1980s and 90s. They’re describing the current job market as a “game of chicken” where the person who can stick it out longest wins. And the data backs this up – while overall layoffs remain low historically, white-collar roles are particularly vulnerable, and businesses are hiring at some of the slowest rates since 2013. Ian Carter’s story says it all: after being laid off in May, he burned through savings, switched to a month-to-month lease, and eventually had to move back with family in Florida because “rent without income coming in is doubly expensive.”
What this means for everyone
So if job security is dead at Microsoft – a company sitting on mountains of cash and dominating multiple industries – where does that leave the rest of us? These stories suggest we need to fundamentally rethink our relationship with work. Joe Friend, after more than two decades across three stints at Microsoft, now says he’d rather earn $50,000 doing something he’s excited about than return to Big Tech. The lesson these laid-off workers want everyone to know is simple: your loyalty to a company means very little in today’s corporate environment. Your network, your side hustles, and your adaptability are what actually matter. And honestly, that’s a pretty sobering reality check for anyone still clinging to the idea of corporate loyalty.
