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🚨META IS CUTTING 8,000 PEOPLE THIS WEEK.. THE SAME WEEK THEY ANNOUNCED A SURGE IN AI SPENDING.. THE PEOPLE BEING FIRED ARE BEING REPLACED BY THE TECHNOLOGY THEIR OWN WORK HELPED PAY FOR..
this is not a struggling company making hard choices.. Meta generated $56.3 billion last quarter.. they are cutting from a position of complete financial dominance.. because the math of replacing human labor with AI now closes and nobody at the board level is incentivized to wait..
here is how the loop works.. the company invests in AI infrastructure.. the AI infrastructure makes a category of human roles redundant.. the company cuts those roles and redirects the savings into more AI infrastructure.. the AI gets better.. more roles become redundant.. the loop tightens.. and every quarter the earnings call gets easier to deliver..
Zuckerberg already told you in 2024 that AI would be doing mid-level engineering work by the end of 2025.. he said it in public.. calmly.. like a weather forecast.. and nobody treated it like the announcement it was..
Salesforce cut 4,000 customer support agents.. Goldman Sachs deployed a coder that lets one engineer do the work of five.. Block cut nearly half its workforce.. and now Meta cuts 8,000 while the stock goes up because the market has decided that human labor on the cost side of a balance sheet is a problem to be solved and AI is the solution..
8,000 people had mortgages.. car payments.. children in school.. grocery budgets.. streaming subscriptions.. and businesses that depended on them spending that money.. and every one of those downstream dependencies just got a little tighter without anyone in a position to stop it being asked to answer for it..
the company made $56 billion and told 8,000 people they were too expensive..
and they called it investing in the future.