So, Amazon announced they’re laying off 30k people. This is set to be the largest layoff in the company’s history. That’s on top of Microsoft cutting 15k, Meta cutting 3.6k and Google cutting hundreds this year. Over 180,000 tech workers laid off in 2025 alone.

But here’s what nobody’s connecting and it’s actually insane when you connect all the dots. These same companies are spending over $300 billion on AI this year. So they’re firing people to “free up capital for AI investments.” Then spending that money buying stuff from each other. And none of it’s making them money yet.

Let me break down what’s actually happening:

Layoff is just an excuse - Every company’s using the same line. “We’re restructuring for AI.” “AI will handle these tasks now.” “We need to fund AI initiatives.”

Zuckerberg said AI could be ready this year to “effectively be a sort of mid-level engineer capable of writing code.”, Amazon CEO Andy Jassy said “we will need fewer people doing some of the jobs that are being done today.”, Salesforce laid off 4,000 customer support staff and their CEO literally said it was because of “increasing AI adoption.”, IBM cut 8,000 jobs in HR because “AI tools take over routine administrative tasks.”

So the story is AI’s now capable of doing these jobs right? That’s why they gotta fire everyone. Except the thing is - They’re not saving that money. They’re spending way more than they’re saving.

and where the money is really going? They’re buying from each other…

Read in full here:

https://old.reddit.com/r/ArtificialInteligence/comments/1oj52xx/tech_companies_are_firing_everyone_to_fund_ai_but/