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The recent wave of white-collar layoffs across industries isn’t about “AI replacing human labor”—it’s about companies redirecting funds previously earmarked for salaries toward AI-driven initiatives. Take Oracle, for instance: its aggressive investments in AI data centers have strained cash flow, prompting plans for large-scale layoffs. Similarly, Microsoft and Amazon have also implemented significant workforce reductions due to soaring data center costs. At present, AI technology has not yet replaced white-collar jobs on a large scale. The real catalyst behind these layoffs is a strategic reallocation of corporate budgets to prioritize AI development. Financial constraints have intensified, and the resulting “funding displacement” is now palpable in the job market.
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