Microsoft data center layoffs leave workers stunned after relocating for tech jobs

Multiple technicians who worked at Microsoft’s data center in Mount Pleasant say they were unexpectedly laid off after relocating from out of state for what they believed would be long-term job opportunities.

The workers say they were hired through TEKsystems, a contractor for Microsoft. On Wednesday, February 25, they received an email from a TEKsystems Delivery Lead stating in part:

“The work performed on the project at the Fairwater site has exceeded expectations and there is not enough remaining work available for this project for our current size team so, we are reducing consultant headcount effective immediately.”

TMJ4’s Meryl Hubbard spoke with five former employees. One of them, who asked to be identified only as Chuck to avoid retaliation in future job searches, moved from the East Coast in January. He said he was laid off after just four weeks and had used his savings to relocate.

“A lot of kids like myself were told growing up, ‘get into tech. You know, there’s this bright, promising future that pays very well,’ and I feel like that’s a false promise a lot of people need to wake up from,” Chuck said.

Chuck said the sudden layoff has left him in a difficult financial situation and urgently searching for work.

“And now here I am, about to be homeless,” he said.

According to Chuck, workers were led to believe the position could eventually lead to permanent employment with Microsoft.

“They mentioned TEKsystems actually encourages flipping to a Microsoft full-time employee. So the entire plan was just a pipeline into Microsoft,” he said.

He added that he believes the layoffs reflect broader concerns within the tech industry.

“It’s indicative of an erosion of workers’ rights, especially in the tech industry, that is unsustainable,” Chuck said.

Another former technician, Jose, said he did not relocate but worked at the center for about a month before being laid off. He said employees were hired as at-will workers but felt expectations were set high.

“There was that insinuation that, hey, you know what, this is going to be big for everybody,” Jose said.

Jose said he chose to speak out on behalf of those who uprooted their lives for the job.

“I did this more for the people who actually did, you know, pack up and leave. They left their lives behind for bigger and better things, and only for this to happen,” he said.

Microsoft is investing billions of dollars in Wisconsin for what it describes as the world’s most powerful AI data center. In a statement, a company spokesperson said:

“As with any construction project, Microsoft’s work in Mount Pleasant involves various subcontractors and partners with planned, limited-term employment, including recent work substantially completed as a result of a short-term contract with TEKsystems.”

The former employees described the situation as a mass layoff. TMJ4 said it contacted TEKsystems multiple times by phone and email seeking confirmation on how many workers were affected and additional context, but did not receive a response.