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AI Becomes a Cost-Cutting Tool Across Tech

Executives present the reductions as a move toward AI infrastructure.

Overview

  • Time Magazine reported that Oracle eliminated between 20,000 and 30,000 jobs worldwide as it shifts spending to AI systems and new data centers.
  • At Meta contractor Covalen in Ireland, more than 700 roles in AI training and content moderation are at risk, according to the Irish Times.
  • A Bytedance unit in Berlin dismissed about 150 content moderators who had trained its systems, and many now fear software will replace their careful review.
  • Much of the data labeling that feeds AI runs through subcontractors in Kenya, Venezuela, and Madagascar with very low pay, long shifts, and scant protections, and similar short-term gigs in the U.S. expose workers to violent and sexual content.
  • German labor groups say works councils have so far curbed mass cuts in the country, though they warn those safeguards could erode as companies reorganize around automation.