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Why offer buyouts instead of cuts?

Voluntary buyouts, like Microsoft's, allow companies to reduce staff numbers without the legal complexities and potential damage to morale associated with compulsory redundancies. They can be a more cost-effective way to restructure, as the financial packages and career support offered are often less than the total cost of managing redundancies, including legal fees and potential severance disputes.

Stories that explain this

Microsoft Offers Buyouts to 60,000 Staff Including UK Workers

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