A buyout is a way to support good and loyal workers and avoid the devastating blow of being laid off while ultimately cutting jobs. By contrast, layoffs can be more complicated, requiring an evaluation of each employee’s skill set and performance to avoid litigation risk, Moran said.
“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,’” she said.
“What they’re trying to do is make sure that they work more leanly and efficiently,” Moran said of Microsoft. “They have figured out that the people they have are the people who are doing jobs they need, maybe at prices that are too high.”
Microsoft declined to comment about the buyouts.
The employee’s choice
For those at the opposite end of buyouts, they can be attractive to employees looking to transition, under-performers who fear getting fired, or people who think they can get another good job, she said. Employees can leverage waiting periods to find a different job before deciding to leave on their own terms.
