This Washington man gave Microsoft 31 years — then was fired with 120 others. Now 60,000 former colleagues are being offered a choice he never got

The mass layoff was part of a company-wide focus on “reducing management layers and streamlining processes,” a Microsoft spokesperson told Business Insider. And it looks as though they’re not finished cutting costs just yet.

The company recently announced it’ll be offering voluntary buyouts to select employees for the second time this year. Roughly 60,000 employees in select departments and seniority levels will be offered different severance packages that coincide with their individual employee standing. The move is meant to reconfigure the company’s workforce to better support AI initiatives.

While a buyout gives you the choice to stay or go, many U.S. workers don’t have the same option, and are simply forced out — like Kostersitz. But even if a worker chooses to accept a buyout, they’ll need to find more work when the money runs dry.

Layoffs are on the rise — what does that mean for the job market?

Microsoft’s layoffs and buyouts are part of a larger trend.

In recent months, Amazon and Meta have trimmed their workforces. Amazon cut additional jobs in May after cutting 14,000 jobs in October 2025, citing a shift toward AI automation. As of January, it plans to cut 16,000 roles total. Meta has eliminated hundreds of roles this year and is expected to reach thousands.

Cost-cutting and AI are the top reasons employers are using to explain the job reductions. Overall, the tech industry has announced over 195,000 job cuts in 2026.

Despite this, U.S. unemployment remains relatively low and has slightly decreased since the start of the year. It would appear, though, AI is the competitive edge many job seekers need on their resume going forward.

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. 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.