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Tech Layoffs Not Tied to Economic Struggles, but AI Investments


Recent tech layoffs have left many questioning the industry's stability. However, a closer look reveals that these layoffs are not a sign of economic

The tech sector is pouring billions of dollars into artificial intelligence (AI) while simultaneously implementing workforce reductions, signaling a deliberate shift in focus and strategy. This strategic move is distinct from crisis-driven cost-cutting measures, as companies like Microsoft and Amazon, despite recent layoffs in specific divisions, are gearing up for significant investments in AI. The industry’s recognition of the maturity of the smartphone era and the slower adoption of other trends like cryptocurrency/web3 and the metaverse has led to a deliberate pivot towards preparing for a substantial wave of growth centered around AI.

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