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Microsoft is set to lay off several thousand employees, primarily in its sales department, as part of a restructuring aimed at optimizing its workforce while advancing its costly artificial intelligence initiatives. This move follows a previous reduction of 10,000 jobs in January 2023 and comes just before the start of the company's new fiscal year in July.
Google has offered buyouts to employees in various divisions, including its knowledge and information unit, as part of a strategy to reduce headcount following previous layoffs. The voluntary exit program encourages those not aligned with the company's goals or struggling in their roles to consider leaving, while also mandating a return to office for some remote workers. This shift towards buyouts comes amid ongoing cost-cutting measures as Google invests in AI infrastructure.
Companies are increasingly laying off employees while implementing AI technologies, but many are reluctant to explicitly connect job cuts to AI advancements, opting instead for vague terms like "restructuring." Experts suggest that this trend reflects a strategic avoidance of backlash from employees and the public, even as AI's role in workforce changes becomes more apparent. The article highlights that while AI can automate many tasks, the need for human expertise remains crucial in various roles.
Amazon has announced job cuts affecting 14,000 corporate workers, with potential reductions rising to 30,000, accounting for about 10% of its white-collar workforce. This move is part of a broader strategy by CEO Andy Jassy to reduce expenses amid rising competition and increased spending on AI.