Microsoft just posted a record quarter.
And announced another 6,000 layoffs.
Is AI to blame?
Absolutely.
Big Tech is riding the AI wave like crazy. Quarter after quarter, they’re smashing profit records. Yet, they keep reducing headcount.
Why? Because the economics of AI are brutal.
Microsoft, the biggest backer of OpenAI, is investing billions into cloud infrastructure to feed the insatiable demands of ChatGPT and Copilot.
These machines need data centers, not desks.
And if you’re spending so much somewhere you might need to save somewhere else.
Satya Nadella recently claimed that 30% of code is AI-generated.
That means fewer engineers, more servers.
AI isn’t just disrupting labor.
It’s reshaping the definition of productivity.
The winners remain the shovel sellers and whoever manages to turn AI into an asset instead of a threat.
