My thoughts on why so many Tech Layoffs are happening now. We keep hearing that AI is automating jobs out of existence, but that’s only half the story. In reality, what we are seeing is the aftermath of massive capital investment. Over the past couple of years, tech giants have poured billions into AI infrastructure GPUs, data centers, training clusters, all of it. That’s serious capital. And when you spend that much, you still have to show growth and profitability every quarter. The result? A brutal round of internal reprioritization. Only “cash cow” products and high-ROI bets are being kept alive. The nice-to-have or long-horizon projects are being quietly shelved. And when those projects go, so do the teams behind them. These rounds of layoffs isn’t just about automation. The cost of chasing AI innovation has to come from somewhere.
Totally agree with this. The massive AI investments are forcing companies to cut elsewhere, and sadly, that often means people. The future is being built at the expense of today’s workforce. What’s even more concerning is that the ROI on many of these AI projects isn’t there yet. Everyone’s racing to implement AI, even in cases where it doesn’t add real value.
This is one of the "valid" aspect, not necessarily the only one. With massive AI infrastructure, now “cash cow” products and high-ROI bets can be easily identified with-in short time without any "human bias". Pre-AI, to save jobs, human leaders were able to hide or prolong these project successfully.
AI is a drain on the economy. It's a drain on natural resources and utilities. And now it's a drain on funding for jobs, which means people will be pulling from the scant social safety net we have left. I would trade every AI assistant foisted on me to talk to a human with critical reasoning skills and an empathetic urge to solve my problems.
Tech layoffs and Layoffs in Tech are 2 very-different things and needs a distinct call out. Remember AI did neither evolve on its own nor an outside's grand-scheme , the same "techies" are responsible for its existence & now growth. Essentially its a playground for survival , only the fittest and the most adaptive will survive ...TBH irrespective of the fact that there existed a "time-of-peace" , one always has to prepare for war.
💯 agree with you
The irony is that while companies are cutting people to fund AI, they’re also exposing how inefficient their processes have been all along. And worse, they’ll crumble once the key people are gone and “AI” can’t keep up the pace.