Core Insights - A significant layoff wave affecting 100,000 people is sweeping through Silicon Valley in 2025, despite tech giants reporting rising profits, indicating a complex interplay of AI technology revolution, capital logic restructuring, and industry strategic transformation [2][3] Financial Performance and Layoffs - Tech giants are experiencing a surge in profitability, with Amazon's net profit soaring by 101% in Q2, Microsoft's revenue growth at 12% for the first three quarters, and Intel achieving quarterly profitability through cost control [3] - Despite these financial successes, layoffs continue unabated, with Amazon planning to cut 30,000 jobs, Microsoft over 20,000, Intel 24,000, and Meta over 10,000 from 2023 to 2025 [3] - This paradox of rising profits alongside job cuts reflects a deep transformation driven by AI in the tech industry [3] AI's Role in Layoffs - The explosive development of generative AI is a core driver of the current layoff wave, as AI now possesses the capability to replace certain job functions, particularly repetitive roles [4] - Positions in human resources, testing, market operations, and even creative tasks like writing and design are being significantly replaced by AI tools [4] - Middle management roles are also at risk, as AI systems can partially replace coordination functions, exemplified by Meta's elimination of 600 positions in its FAIR lab [4] Underlying Logic of Tech Companies - The current layoffs cannot be solely attributed to cost-cutting; understanding the underlying logic of tech companies is essential [5] - Historically, Silicon Valley's growth was supported by capital investment, with a focus on attracting talent; however, the current investment landscape prioritizes AI capabilities over human talent [6] - The shift in investment criteria signifies a fundamental change in Silicon Valley's operational logic, marking the arrival of a new era centered around AI productivity [6]