While letting some people go, Microsoft will most likely continue to hire new employees, correct me if that's not true.
Is there any logic in that at all?
Isn't it a better solution for the company to keep as many existing employees as possible and re-assign them to the other projects?
There is no loyalty feom companies.
Regardless of how long you have worked there, always remember: Everyone is expendable. When you see leadership (VP's & Directors) voluntarily exit- that's a hint!
Many existing employees at Microsoft have been there a long time. Forcing entire departments to reapply for jobs is a way to get rid of some less performant people, and motivate the rest that may have become complacent over the years or thought they were essential...
Not nice from a human view point, but effective.
Reassigning current employees assumes they have the skill set to take on the jobs that are currently hiring. Often they don't. Many times the company doesn't care or isn't really able to assess. Sometimes, companies just use that as code to get rid of older and more expensive employees.