We explore the Microsoft layoffs. We analyze Brad Smith's statements, connecting them to AI infrastructure investments. Our discussion reveals how capital expenses influenced the company's workforce decisions. #MicrosoftLayoffs #AISpent #BradSmith #TechNews #ArtificialIntelligence #TechIndustry #Microsoft #GeekWire #CapitalExpenditures #AIInfrastructure
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Everyone’s busy blaming AI for the layoffs, but the real executioner was Congress. Section 174 kicked in for 2022, and suddenly companies couldn’t write off R&D costs like they used to. Dev salaries had to be amortized over five or fifteen years. That blew up taxable income overnight. Companies didn’t lay off engineers because AI got good. They did it because Congress made it financially insane to keep them.