Even Companies That Aren’t Struggling Keep Laying Off Workers
https://archive.ph/CzJsC

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The software giant and OpenAI backer confirmed to Barron’s Wednesday that it is “planning terminations related to performance,” adding that the company typically backfills such roles. “When people are not performing, we take the appropriate action,” a Microsoft spokesperson said. It didn’t provide a specific number of people affected.

It’s last big layoff came in January of 2024 when it let 1,900 employees go in its Activision Blizzard and Xbox operations, a few months after acquiring Activision Blizzard. The company has 228,000 employees total, including 126,000 in the U.S.

Microsoft is still the third largest publicly traded company in the U.S. by market value, but its stock has lagged behind the broader market. Shares rose 13% over the past 12 months, about 11 percentage points less than the S&P. While it beat earnings expectations in October, its stock price fell as the company reported higher spending on artificial intelligence. It has said it would spend $80 billion on AI data centers during the current fiscal year ending in June.
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Similarly, the construction industry has embraced robotic solutions. Innovations like Fastbrick Robotics' Hadrian X, which is capable of laying 300 to 1,000 bricks per hour, drastically reduce the time and labor needed for traditional methods. These advancements address labor shortages while minimizing the physical strain on workers.

In mining, the integration of robotics, artificial intelligence and drones is reshaping site management.
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Companies hire and layoff based on the need for staff. And so-called artificial intelligence (AI) reduces the need.

And, companies see an economic downturn coming. Which further encourages them to replace people with bots In turn, less people with jobs means less spending and less savings.