MICROSOFT, META CUT THOUSANDS BEFORE EARNINGS

Both companies are planning layoffs that could impact thousands of employees, with announcements arriving days before earnings calls that will detail financial performance to investors. Sarah Franklin, CEO of HR platform Lattice, pushes back on the strategy. She argues that focusing on "tokenmaxxing," AI deployment, and large-scale job cuts misses the mark for freeing up capital effectively. The timing reflects broader trends in the tech sector, where companies have shifted strategies following years of aggressive hiring. Major firms have faced pressure to demonstrate profitability and operational efficiency to shareholders. Earnings reports this week will reveal how these cost-cutting moves affect financial metrics and whether investors view the reductions as prudent restructuring or reactive measures. The announcements precede detailed guidance on future spending and hiring plans. Franklin's commentary suggests debate within the industry about whether workforce reductions represent the optimal path to improving financial performance compared to other efficiency strategies.