Big Job Cuts Come Ahead of Big Tech Earnings

Microsoft and Meta are cutting thousands of jobs ahead of their quarterly earnings reports, expected later this week. The layoffs signal cost-reduction strategies amid economic uncertainty. Sarah Franklin, CEO of HR platform Lattice, criticized the focus on mass layoffs and "tokenmaxxing" as misguided ways to free up capital, suggesting they harm long-term growth. The term "tokenmaxxing" refers to over-optimizing AI token usage for cost savings, which Franklin argues distracts from sustainable business strategies. Franklin emphasized that prioritizing AI efficiency and workforce reductions may undermine innovation and employee morale during a critical tech transition. The cuts reflect broader industry trends as companies balance AI investments with profitability pressures in a volatile market.