BusterAg said:
infinity ag said:
BusterAg said:
infinity ag said:
Logos Stick said:
On average, 20 million people are fired each year... in a NORMAL year.
Knowing people who have been fired and are unemployed in any given year is pretty normal thing.
The only thing concerning to me is that companies are not hiring new grads at the same rate because of AI - 5.6% UE versus overall of 4.2%.
"Because of AI" is misleading.
They are not hiring new grads because they want to spend on AI infra, or are just waiting on the sidelines because of perceived risk right now (maybe waiting for Trump to leave). Not because AI is improving their processes in a very meaningful way. But corps won't say it because they lie a lot.
"getting fired". Sure. Earlier they were fired for low performance. Now they are fired to make way for Ramesh and Vijay.
Corporate earnings are up a lot more than corporate revenue over the past 12 months. Why is that?
I didn't check if that is correct, but assuming it is so, there are various ways corps can show whatever they want to achieve their goals. Don't blindly believe the spiel corps put out.
Be more cynical.
1 - it is correct. Let me know if you see data that is contrary, I'm not afraid to change my understanding of that with new, reliable data.
2 - Do you think that corporations just magically all decided to start fudging earnings since AI was introduced? Earnings manipulation is a new thing?
The SG&A savings from AI is real. I see it at work in my company. It's not in the form of replacing people, but reducing the number of people that don't have to think to do their jobs with people that do think that can use AI to do the work of 4 unthinking employees. Which is a lot of them.
Yep. This is well known and we've discussed it quite a bit even before AI came up. AI just accelerated it regardless if one believes layoffs are due to AI or not. Goldman is projecting kickass corporate earnings going forward due to ongoing profitably focus whether that is AI or not.
Pre-COVID corporate America was all about growth (revenue). Post COVID there was a sea change to focus on profitability. You can go back and read business articles on this from 4-6 years ago and see the change in business media. I've shared my own experience with this from my F250 company before I retired during COVID. Our primary metric was revenue growth. We literally didn't even look at profitability which is stupid. I measured it on my own and would inject it wherever I could but no one cared.
After I left, and revenue tanked during COVID, profitability suddenly became important again. I've stayed in touch with my old team and all they look at now is profitability. It has completely changed how they operate. As a result, layoffs and firings are old hat. Need to increase that metric? Fire some people. Easy peasy.