The analysis suggests recent layoffs are often due to corporate restructuring and capital reallocation towards AI infrastructure, rather than immediate AI-driven job substitution. Companies are investing billions in GPUs, data centers, and AI talent to prepare for future AI integration, even as overall headcount declines. Microsoft's recent layoffs were not directly attributed to AI, despite AI reshaping work processes.
Companies are shifting capital from labor to AI infrastructure (GPUs, data centers, software), driving demand for compute resources before fully displacing human workers.