Given the interest rates a valid explanation is that we are not done with the employment contraction still.
But it looks to me that the layoffs are due to AI but not because the positions are replaced, because capital is flowing to hardware instead of new hires. The growth engine of the tech industry used to be people, now it is clearly gpus. If you have 10 billion in the bank you are not going to aggressively expand your workforce, you are going to build datacenters.
But it looks to me that the layoffs are due to AI but not because the positions are replaced, because capital is flowing to hardware instead of new hires. The growth engine of the tech industry used to be people, now it is clearly gpus. If you have 10 billion in the bank you are not going to aggressively expand your workforce, you are going to build datacenters.