Mass job loss won't happen because it will harm the economy and laying people off is expensive. Instead less people will be hired which will also harm the economy but at a much slower pace and gives time for society to adjust. Many jobs were also never technically needed but companies are incentivised to grow. The headcount of Microsoft grew by roughly double in the past decade which never meant double the productivity. Part of it is, the employees are the moat. Even if they don't need them, they don't want them to start their own companies or to move to other companies.
didn't microsoft just layoff 60K people 25% of its workforce like today so that it can invest in data centers.
I think alot of knowledge workers will get laid off which will force alot of people into lower paying jobs. until those get automated. as fast as the tech companies predict probably not but sooner rather than later. I also think alot of software gets turned into custom software. its possible there will be more jobs for engineers to work on the custom software using AI.
Mass job loss won't happen because it will harm the economy and laying people off is expensive. Instead less people will be hired which will also harm the economy but at a much slower pace and gives time for society to adjust. Many jobs were also never technically needed but companies are incentivised to grow. The headcount of Microsoft grew by roughly double in the past decade which never meant double the productivity. Part of it is, the employees are the moat. Even if they don't need them, they don't want them to start their own companies or to move to other companies.
didn't microsoft just layoff 60K people 25% of its workforce like today so that it can invest in data centers.
I think alot of knowledge workers will get laid off which will force alot of people into lower paying jobs. until those get automated. as fast as the tech companies predict probably not but sooner rather than later. I also think alot of software gets turned into custom software. its possible there will be more jobs for engineers to work on the custom software using AI.
>didn't microsoft just layoff 60K people 25% of its workforce like today so that it can invest in data centers.
No, they expect less than 5% to take the offer.
I think it is cheaper and carries less risk to freeze hiring at entry level then to start mass layoffs which is why we likely won't see it.