Even with Strong Results, Layoffs Continue... The Era of Permanent Layoffs Has Arrived

Layoffs are becoming a routine operational strategy rather than an exception during economic downturns in the big tech sector. Microsoft recently announced layoffs of approximately 4,800 employees, while Amazon and Meta have also repeatedly cut staff in recent years to expand AI budgets. Cloudflare reduced over 20% of its workforce in May, and Cisco announced plans to cut about 5% of staff after reporting its highest revenue in a fiscal third quarter. Executives argue that continuous workforce adjustments are necessary to maintain competitiveness in the AI era, while companies acknowledge AI investment and pandemic-era hiring surges as key factors driving these changes.