9 days ago
- Microsoft and other tech companies like Amazon, Meta, and Cisco are conducting layoffs despite profitability, often linked to AI investment shifts and cost-cutting.
- Layoffs are becoming a regular feature in tech, driven by AI advancement, competitive pressures, and 'continuous tuning' rather than just recession concerns.
- Companies face uncertainty in AI implementation, with few achieving significant workforce reduction through AI; instead, they seek productivity gains without high spending.
- AI talent is scarce and expensive, prompting companies to upskill existing employees rather than replace them entirely with new hires.
- Recurring layoffs can be costly, damaging organizational knowledge, morale, and efficiency, while companies may need more contextual experts as AI evolves.