Posted by: Bob Silvestri
March 19, 2025
The term “efficiency” is in the news these days. However, contrary to the nonsense being peddled by the DOGE crowd, achieving increases in “efficiency,” which is fundamental to increased “productivity” and “wealth creation,” is about much more than randomly firing people to cut costs. If cost-cutting is not done in concert with even greater capital investment in people and technology, the net result is the degradation of operations and a sure path to bankruptcy.
This explains why tech titans — Google, Meta, Amazon, et al – are simultaneously laying off staff to reduce expenses while investing multiples of those savings in generative AI (Gen-AI) because they know that their investment is the only path to faster, cheaper, better.