"Unraveling the Surge of Tech Industry Layoffs Amid Record Profits and AI Boom"
Despite returning to pre-pandemic levels and being profitable, big tech companies like Meta, Amazon, Microsoft, Google, TikTok, and Salesforce have collectively laid off about 25,000 employees in the first four weeks of 2024. Experts attribute this to a "herding effect" where layoffs seem to boost stock prices, making it the new normal in the industry. Wall Street's positive response to cost discipline has encouraged more layoffs, creating a contagious effect where companies imitate each other's employee terminations, ultimately leading to a self-fulfilling prophecy of continued downsizing.