Microsoft is laying off 9,000 employees

Despite yet another round of tech layoffs, the fear around AI shouldn’t be augmented.

Transcript

00:00It looks like Microsoft is the latest tech company to cut jobs once again.

00:05We had Amazon warning that AI is going to shrink its workforce.

00:09They need to do more with less.

00:11What impact do you think AI will ultimately have on jobs?

00:16So I actually have a wonky thesis on what I think is going to happen with jobs.

00:21It's not going to be as disruptive as people think.

00:23I think the first wave is going to seem very disruptive

00:26because workforce is going to evolve in this AI future.

00:30So what do you have to do in that evolution?

00:32Remove the positions that aren't required for that future.

00:35So we're getting 4% layoffs today at Microsoft.

00:38You're seeing meta do layoffs.

00:39You're seeing Amazon CEO create that letter of like,

00:42there's going to be disruption, everyone be prepared.

00:45I think that's just the first wave.

00:46But in every revolution, there's been job expansion.

00:51Do you think Microsoft is going to have the same headcount in five years than they do today?

00:54I think the consensus is yes.

00:57It's just going to be a different kind of job in that process.

01:00So the first wave, 10% reduction probably, maybe 15% in the next two years.

01:05But once that happens, I think there's going to be a big back on new hires in the third and fourth wave.