This is nothing new. Sometimes companies lay off hundreds or thousands of employees only to re-hire them, or others, just to shed salaries. When you factor in salary, benefits and burden (worker's comp, taxes, etc.) 7800 employees can be a big chunk of change. Even if they're re-hired at reduced salaries and/or benefits, the savings can be tremendous. Don't blame Microsoft, blame the greedy investors who want to maximize their dividends.