Not all employees need to be the "best". But if you are a top tier company in a given field like Microsoft, you need the best minds to stay top tier, otherwise you will descend. But on the other hand you don't need the lower tier performers to stay top tier except for scaling reasons because the supply for top tier performers is a very small pool...
I might be wrong, but I doubt that these mass buyouts were also offered to those that are strategically relevant. Though I guess that can happen if that specific branch of the management tree is bad at their jobs
Getting rid of your best means you'll also make sure that the rest of them slowly, but surely leave and never come back. Good people will not work with average people which results in long term failure to compete for the company.
There's a reason why all tech industry leaders have focused on getting a *consistent* and *even* pool of good workers to establish themselves there (against wisdom of the MBA crowd you're repeating here).
Or rather because they share observations about the world you might not like.
This is what a discussion is - and besides me not liking it, it's also flawed and dismissive of people.
Having checked your CV, I can see why you're probably doing it, but that's still.. not great. Maybe you should've also checked mine before running with these strong opinions.
This also works as price discovery mechanism for both parties. Best employee can take a break and apply later for different job, profile, growth industry etc. Companies also find better to hire what they think best at market price instead of honorary best which are there for long time.
Even now with agentic work there are areas I am able to do well and some areas im not. It's definitely always changing.