Nov 21, 2025
Thousands of Microsoft workers have been laid off in the past year, and Washington resident Mike Kostersitz is just one of them. After spending 31 years at Microsoft, he’s now looking for a job for the first time in more than three decades.
In May, the 60-year-old principal product manager lead said a new high-priority meeting appeared on his calendar out of nowhere.
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“Me and 120 other anonymous faces got told our jobs had been eliminated,” he told Business Insider (1). The layoff came as a complete surprise. “After 31 years, you would expect at least your manager or your VP or somebody to come to you and say, ‘Hey Mike, this is going to happen and here is why.’”
A few years ago Kostersitz presented an ‘architectural deep dive” in a YouTube video and introduced himself as a PM lead on the Azure Kubernetes Service on Azure Stack HCI (AKS-HCI) team (2).
Kostersitz is among thousands of tech workers suddenly forced to navigate an unfamiliar job market reshaped by automation, AI and an industry-wide slowdown.
The good news is that he recently shared on LinkedIn that “something exciting is brewing” and he is feeling “grateful, fired up and ready to lace up for what’s ahead.”
Layoffs are on the rise — what does that mean for the job market?
Microsoft’s layoffs are part of a larger trend. In recent months, Amazon, Meta, and Alphabet have all trimmed their workforces. Amazon cut 14,000 jobs in October, citing a shift toward AI automation. Meta eliminated roughly 600 roles in its “superintelligence” division, while Alphabet reduced staff in its cloud unit.
According to executive outplacement firm Challenger, Gray & Christmas, cost-cutting and AI were the top reasons employers cited for job reductions in October (3). The so-called "DOGE impact" is the leading reason cited for layoffs in 2025 overall.
The tech industry announced 33,281 job cuts in October 2025 — a sharp jump from 5,639 in September, and the highest number recorded across any private sector that month. For all of 2025, tech firms have announced 141,159 job cuts, up 17% from the same period in 2024.
While overall U.S. unemployment remains relatively low, it has risen since the start of the year. It would appear competition for tech roles has intensified. Reports suggest thousands of skilled professionals are now competing for fewer openings, often requiring updated skill sets in AI, data science and automation.
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How to navigate a layoff
Layoffs can be both financially and emotionally jarring. But as Kostersitz’s story shows, there are ways to stay grounded, adapt, prepare for what’s next and land somewhere new and exciting. If you've been laid off or fear you will be, here are a few steps to help find a new role and navigate the emotional impact.
Take time to process the layoff
It’s normal to feel shocked or even betrayed, especially after spending decades at one company. Kostersitz said he took the rest of the week off before beginning his job search. Taking a few days to reset can help you think more clearly about next steps and what you really want in life.
Ask about resources
Some employers, like Microsoft, include career services or financial counseling as part of severance. Kostersitz told Business Insider the tech giant provided a career advisor as part of its layoff package, adding that he also hired a private coach to help with resumes, cover letters, and LinkedIn optimization. If you're laid off, ask about internal resources you may have access to, such as online training or interview prep.
Stay up to date on your industry
Kostersitz admitted that reentering the job market after 31 years was like being a fish out of water. Use this period to brush up on emerging tools, especially AI-related technologies, even if your role isn’t technical. Free online courses and certifications can help bridge gaps and make your resume more appealing to recruiters and hiring managers.
Prepare for interviews
Research interview questions in your industry and prepare answers for common questions. Expect behavioral questions. Come up with three to five concise stories that highlight problem-solving, leadership and adaptability, backed by measurable outcomes. The goal isn't to appear scripted, but to demonstrate that you're prepared and capable.
Lean on your network
Referrals can make a world of difference in a competitive hiring field. Kostersitz, for example, landed an interview with Nvidia thanks to a referral from a current employee. Reach out to old colleagues, alumni groups, and industry peers. Even if they can’t hire you, they can often connect you with opportunities or advocate for you internally.
As layoffs continue to rise in the tech sector, now is a good time to get your finances in order. Even if you don't feel like you're at risk of a layoff, consider beefing up your emergency fund and refreshing your resume. Preparation — both financially and professionally — can make navigating a layoff easier.
Article sources
We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.
Business Insider (1); Carsten Rachfahl/YouTube (2); Challenger, Gray & Christmas (3)
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Danielle is a personal finance writer based in Ohio. Her work has appeared in numerous publications including Motley Fool and Business Insider. She believes financial literacy key to helping people build a life they love.
