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I thought the same thing about Microsoft.. Even his e-mail saying they "only" made SIXTEEN BILLION dollars last QUARTER... I mean nice way to say we can't afford you people right?
But it's really a PR move. All those employees get nice severance packages, and many probably get re-hired in other departments and whatnot.
They don't do it because they're running out of money, they do it to appease the stockholders of the company who they have to answer to.
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