In 2025, Silicon Valley is experiencing a transformation that seems, at first glance, to be a paradox. On one hand, tech behemoths are hitting unprecedented highs in terms of performance and stock prices. On the other, they are launching large - scale layoffs simultaneously. This year, the tech industry has witnessed over 100,000 job cuts globally, with more than 24,500 employees being laid off in April alone. Tech giants such as Amazon, Microsoft, and Meta are reporting robust financial results. However, they are drastically cutting down on staff in departments like human resources, testing, and market operations. Some have even put a freeze on hiring for junior positions. The root causes of this seemingly contradictory situation can be traced back to the triple - pronged impact of the AI technological revolution, the restructuring of capital logic, and strategic transformation within the industry. The ascent of generative AI has led to a significant replacement of repetitive job roles. Take Amazon, for instance. After implementing AI for automated resume screening, it reduced its recruitment team by half. Similarly, Microsoft's Copilot tool has led to a 40% reduction in support department roles. At the capital level, investors' perspectives have shifted. They no longer consider talent reserves as a core metric for evaluating a company's potential. Instead, they are focusing their investments on productivity - oriented areas such as AI computing power and chips. This change has forced companies to streamline their organizational structures to keep up with the AI era. On the industry front, tech giants are pouring massive amounts of capital into AI infrastructure. In 2025, the four major companies have spent over $380 billion on AI - related projects, marking a 46% year - on - year increase. This heavy investment is further accelerating the optimization of the workforce. This wave of layoffs signifies a fundamental shift in the underlying logic of Silicon Valley. A new era centered on AI productivity has dawned. The apparent contradiction between profit growth and job reduction is, in essence, the outcome of capital's rational decision - making and the sweeping wave of technological revolution.