Big tech is liking the look of its new leaner shape. AI might just help it stay that way.
Companies from Meta to Salesforce have cut jobs in the recent months in the pursuit of efficiency and profit margins. By some estimates, more than 250,000 tech workers have been laid off since the start of 2022.
This new era of efficiency appears to be working financially. Microsoft, Meta, Alphabet, and Salesforce have all now released reassuring results for the first quarter. And thanks to the rise of AI, many of those jobs may be permanently lost, even as these companies get back to growth.
Morgan Stanley analysts recently highlighted the opportunity for Big Tech leaders to “create a structurally more efficient workforce” with the help of AI, reducing the need for software engineers and sales staff in the future. That could slow or stop future headcount growth.
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