The AI layoffs are here, Meta, Oracle, Snap, Block, have all laid people off recently, some even citing AI specifically The real q is whether these are actually because AI are replacing workers or if they just need to alleviate cash from all the capex spending they've done #business #oracle #
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Somewhere along the way .. humans forgot that the whole point was to make sure everyone gets to eat ... And not that fewer people get to eat more ..
"payroll is usually the fastest and the easiest way for a company to cut costs" How about the CEO not giving themself and the board of directors each a 50 million dollar bonus. I'm sure that would save a few hundred million. Instead they take it out on the workers, because 'daddy needs a new yacht, because the old one doesn't have a cup holder'
Got back from an engineering conference a few weeks ago and sat in on 1 1/2 days of AI presentations for manufacturing. To get good AI results the three “E” still matter; expense effort, and expertise.
This is not true. AI did not replace jobs. I work for a similar company and what truly happened is they found inefficiencies and collapsed a lot of the jobs. No job was replaced by AI but they brand it as that to not alert the market and the customers of what they have done. Instead of appearing to be desperate to cut costs, they will appear to be innovative. Instead of appearing to be squeezing a lot from their workforce, fhey will appear to be cutting edge. Instead of appearing to be heartless, they will appear to be simply riding a technological trend. Brilliant!
World depression is coming thus the layoffs
This is just cover for the recession we are for sure head or already in. Saying it's AI is just marketing glaze. Over hiring from COVID plus the Iran Quagmire does not bode well for the economy we are in
This is going to backfire so spectacularly.
What if these people unite together and get rid of all the CEOs and their board of directors? Luigi was just the beginning.
You'll be on UBI's and Skynet will feed you brainrot and you'll be happy. Well 90% of the peoples anyways. for the rest of us..... not so much lol
Block=Square, the payment processor many small businesses use
Could be due to both reasons (cash savings and AI replacement).
Both are happening. Layoffs to help companies cost cut for efficiency and run leaner is what's really going on.
Ironically, layoffs are good for big companies. It increases their free cash flow.
I can confirm I have just been screwed. RIP me
These layoffs are "AI-washed" market corrections. The real economy sucks right now. Many companies that have done layoffs on the "promise" of AI have zero AI infrastructure in place yet.
Many of those jobs will eventually come back after they realize they are building software on sand. Unless they go under because of it, that's also an alternative.
MS layoffs are rule of 70 "retirements". They just cleaning house of big salary ol' timers to make room for new blood that will work for peanuts (especially in low cost geos).
Isn’t it obvious? The downstroke on AI is expensive and the revenue streams are no where near what’s needed. Cut staff is the cowardly move and all these CEO are that gutless. They can’t say ‘No’ to this even while the IRR is not calculable. It’s a double-down to force the spending and adoption. Because the current, ridiculous P/E and valuations need more time to be justified. Hint: that will not happen.
AI excuse
Offshoring jobs for lower pay.