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AI takes the fall for corporate cost-cutting

Layoffs at Google, Amazon blamed on tech, but experts point to mismanagement and profit hunts as true culprits.

AI takes the fall for corporate cost-cutting
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Newsroom, November 05, 2025: Tech giants like Google, Amazon, and Microsoft slashed thousands of jobs in 2025, often pointing to AI as the disruptor, but insiders argue the real drivers are ruthless expense trims and flawed planning rather than automation alone. Google's 1,000 cuts in May, Amazon's 10,000 earlier this year, and Microsoft's 3,000 in July stemmed from overhiring during the pandemic boom and pressure to boost margins amid slowing growth, not just AI tools like ChatGPT replacing roles.

Experts note AI's rise exposes weak spots, such as redundant teams, but it's a handy excuse for executives chasing shareholder gains in an $8 trillion market. True fixes lie in upskilling workers for hybrid roles, not knee-jerk firings that erode morale and talent pools.

Himabindu

Himabindu

I’m a passionate writer crafting impactful headlines and delivering in-depth analysis and reportage. At The Sunrise State, I combine modern tools and data journalism techniques to tell insightful, compelling stories.

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