Labor is the most expensive thing a company buys, more expensive than the cloud infrastructure, more expensive than the office space, more expensive than the espresso machine nobody asked for but the CFO approved because morale was circling the drain and a Breville seemed cheaper than addressing why. https://readuncut.com/the-ai-bet-corporate-america-actually-made-it-wasnt-productivity/

AI Layoffs and Wage Compression: The Bet Corporate America Made
AI gave corporate America a way to gut headcount and get applauded for it. An NBER study found only 2% of execs attributed cuts to actual AI, but 60% cut in anticipation of efficiencies that haven't arrived. The bet was never productivity. It was permanent wage compression with better PR.



