Big Job Cuts Come Ahead of Big Tech Earnings

• Meta plans to cut 10% of its workforce (roughly 8,000 employees), and Microsoft is offering buyouts to about 7% of its US workers.
• Sarah Franklin emphasizes that leaders are investing in severance rather than upskilling their workforce for the evolving AI landscape.
• She highlights the significant cultural and long-term knowledge costs associated with these layoffs, urging companies to focus on transforming and evolving their people with AI.

Tech giants Meta and Microsoft are implementing significant workforce reductions while simultaneously increasing AI investments. Sarah Franklin, CEO of Lattice, critiques this strategy, arguing that companies are prioritizing short-term severance costs over investing in employee skills for the long-term AI transformation, leading to cultural and knowledge loss.