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AI remains top reason for US job cuts for third straight month as employers axed 97,000 workers in May (www.foxbusiness.com)
submitted 2 months ago by to c/technology@lemmy.world
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[–] 20 points 2 months ago (3 children)

Definitely excuse. So many of these companies dramatically over hired during COVID, then after COVID saw a normalization of profits, and a loss because they over hired.

Take block for an example, double or tripled their employees since COVID, but around 2022-2023 their profits fell off hard - they said "AI" is why they're doing cuts. No, they're doing cuts because they're going under

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  • [–] 12 points 2 months ago (1 child)

    Even more simply, demand is drying up as people are getting squeezed from small wage gains and huge inflation. Low demand for goods and incessant demand for "stakeholder value" means cuts have to come. If they're not in quality, it's in overhead (staff) - or both. And now bosses have excuses for both back-office and production staff - "automation" and "AI" respectively.

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  • [–] 4 points 2 months ago (1 child)
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