Microsoft’s recent layoff of 9,000 employees may seem counterintuitive given its reported $25.8 billion net income in April quarterly earnings. However, analysts have improved their forecasts for Q2, and the company’s stock hit an all-time high. This trend is not unique to Microsoft; other major tech companies like Meta and Google are also cutting workers while reporting massive profits.
Despite beating expectations, these companies are facing a new reality: AI-driven automation is changing the job market. The specter of AI hangs over layoffs in the industry, and experts warn that programming jobs might be one of the most AI-exposed categories. While Microsoft claims AI was not a predominant factor in recent layoffs, it’s making a massive bet on its ability to use AI to automate jobs in the future.
The layoffs at Microsoft reflect a broader trend in the tech industry. Former employees are speaking out about an implied pact that Microsoft didn’t quite deliver: stability, work-life balance, and no layoffs. This “pact” is now broken, replaced by new feelings of precarity. As AI becomes more prevalent, workers are facing uncertain futures.
Microsoft’s case highlights the need for a new approach to tech regulation, one that acknowledges both the benefits and risks of AI-driven automation. The industry’s focus on short-term profits may be misguided, as it ignores the consequences of its actions on workers’ lives.
Source: https://nymag.com/intelligencer/article/big-tech-is-making-big-money-time-for-more-layoffs.html