The AI Job Cuts Are Accelerating

Companies are preparing for a time when there might be less work for their employees.

- Anjli Raval

Microsoft, by chief executive Satya Nadella's own description, is "thriving." Its quarterly profits soared by almost 25 per cent, and its market valuation hit US$4 trillion (S$5.15 trillion) last week. In any normal situation, it would seem incongruent that the company is at the same time slashing its workforce by the thousands.

The pursuit of a leaner workforce is not new. In times of economic uncertainty, companies prune excesses—cutting headcount and eliminating inefficiencies. But today, it is not just about doing more with fewer people. Companies are preparing for a time when there might be less work for their employees altogether.

Even as business leaders claim artificial intelligence (AI) is "redesigning" jobs rather than cutting them, the headlines tell another story. It is not just Microsoft, but Intel and BT, that are among a host of major companies announcing thousands of layoffs explicitly linked to AI.

Previously, when job cuts were announced, there was a sense that these were regrettable choices. Now executives consider them a sign of progress. Companies are pursuing greater profits with fewer people.