#ai

HPE is being reshaped into a leaner networking-and-AI company, and anything that doesn’t serve that thesis is now on the table.

AI is not a strategy

Work habits of employees at Oracle has worsened drastically in recent days. Every one going behind AI and trying to assume responsibilities of others.
More like I can also do your work (so we don't need you).

Reduced dependencies inside Team. There used to be a lot of discussions on code base, No one is talking to each other often now.

People using more AI to board more enhancements. But they dont understand how much cr-p they bring.

Cap size useless HR activities with Agentic AI workflows

Happened earlier in July but apparently was largely overlooked and then quickly buried by AK's pre-emptive stock warning.

https://www.bloomberg.com/news/articles/2026-07-09/starbucks-taps-ai-to-reduce-reliance-on-microsoft-ibm-software

By Daniela Sirtori and Brody Ford |
July 9, 2026 at 5:15 AM CDT
Updated on July 9, 2026 at 8:31 AM CDT

• Starbucks Corp. is developing in-house tools with the help of artificial intelligence that could replace some software applications it now buys from companies such as Microsoft Corp. and International Business Machines Corp.
• The coffee chain is building alternatives to a Microsoft system that tracks inventory and an IBM tool that manages maintenance, according to an internal presentation reviewed by Bloomberg News.
• Starbucks spends about $400 million a year on software alone, and building in-house software can be cheaper, an incentive for the company, which is looking to cut costs as part of a broader turnaround effort.

Starbucks Corp. is developing in-house tools with the help of artificial intelligence that could replace some software applications it now buys from companies such as Microsoft Corp. and International Business Machines Corp.

The coffee chain is building alternatives to a Microsoft system that tracks inventory and an IBM tool that manages maintenance, according to an internal presentation reviewed by Bloomberg News. Some of the Starbucks-developed software could roll out by the end of next year, pending the results of testing.

For years, businesses were tethered to their technology vendors due to fear of business disruption and the complexity of building in-house tools. Now AI is shifting that calculus as it makes it easier to develop applications from scratch and as companies push workers to use the technology.

Leading software companies face mounting concerns about whether they’ll be able to fend off competition from products built by upstarts, or their own customers, using AI. This phenomenon has weighed on software stocks this year, with Microsoft and IBM both trailing the S&P 500.

Shares of both companies fell during trading on Thursday, with Microsoft down 2.4% and IBM sinking 5.2% at 9:30 a.m. in New York.

Starbucks spends about $400 million a year on software alone, Chief Technology Officer Anand Varadarajan told workers in an internal forum earlier this year. “There’s clear opportunities to reduce the spend in software,” Varadarajan said, according to a recording of the meeting reviewed by Bloomberg News.

In-house software can be cheaper, an incentive for companies such as Starbucks, which is looking to cut $2 billion in costs as part of a broader turnaround effort. Though in the long run, building can lead a company to pay higher maintenance and labor costs.

When it comes to technology, the company is reviewing “every contract and service,” according to the presentation. In some cases, that includes building products to replace software that its engineers have to heavily tailor anyway.

Starbucks has been working for several years on building a point-of-sale system that would take the place of Oracle Simphony, according to people familiar with the matter who weren’t authorized to speak publicly.

The coffee chain declined to comment. In a blog post earlier this year, the company said AI and other technology advancements will support its long-term growth and free up baristas to focus more on customer service.

Spokespeople for Microsoft, IBM, and Oracle didn’t provide comment.

AI-assisted coding was key to developing the platform that could replace the IBM tool, according to the internal presentation. Starbucks has been pushing tech workers to use artificial intelligence, even factoring usage into their bonuses, Bloomberg News has reported.

There’s skepticism about how much, or how quickly, AI can speed up and automate work. Starbucks recently pulled an AI-powered system to track inventory at stores, reverting to manual counting. It also continues to use software from third-party vendors, including from companies such as Microsoft.

The Starbucks enterprise technology team is on track to reduce its budget by about $30 million in the fiscal year ending in late September, according to the internal presentation. That includes cutting about $10 million in software spending.

Another $13 million will be saved mostly by cutting back on contractors from professional services firms and backfilling some roles with its own staff. Starbucks is setting up offices in Nashville and India that will house some tech workers, while others will remain at its Seattle headquarters. The company has cut about 2,300 jobs since February of last year, including many in tech.

AK is all over the media doing damage control.

https://www.foxbusiness.com/media/ibm-ceo-addresses-wall-street-tech-panic-after-delayed-enterprise-software-deals-surge-back

IBM CEO: Prices for a lot of infrastructure components have gone way up --
https://www.youtube.com/watch?v=F2dFAk5fpq0

IBM’s Krishna tries to reassure investors that AI won’t disrupt company’s software unit --
https://www.cnbc.com/2026/07/23/ibms-krishna-argues-that-ai-wont-disrupt-software-unit.html

IBM's Krishna argues that AI won't disrupt software unit --
https://www.cnbc.com/amp/2026/07/23/ibms-krishna-argues-that-ai-wont-disrupt-software-unit.html

I push cursor-generated code without even looking at it. In fact, I haven't even looked at our codebase in months. All I interact with is the chat window. My teammates don't even read the PR's, they just trust the Copilot comments and approve. So far, nothing has broken. Any other teams doing it like this?

Heard that teams are being limited on their AI spend due to extreme costs by some dev groups. Like $100 per month limit is what we were told, but don't know that for sure. Anybody else have more details on this shiz show?

Hahahahaha...AI is so great; let's get rid of people! Oh no, it costs too much; let's limit it but not hire anyone back! Eddie Jones should have just stuck with treating it's underpaid people nicely and letting everybody be happy the way things were before all this reimagined cr@p!

The enterprise software company Monday.com is reducing its global workforce by approximately 20%. This significant layoff is attributed to a strategic shift towards an "AI-driven growth strategy" and a new AI Work Platform. The company aims to create a flatter organization with more autonomous teams to compete in this evolving market. While reducing staff, Monday.com also plans to continue hiring in key focus areas. The co-CEO emphasized that the decision was not for cost reduction or to replace employees with AI.

New York, New York

https://www.businessinsider.com/monday-com-layoffs-ai-growth-strategy-2026-7

The technology sector is experiencing significant layoffs as companies adapt to advancements in artificial intelligence. Oracle, in particular, has made substantial workforce reductions, cutting 21,000 jobs over the past year. Many companies cite AI integration and a need for restructuring as primary drivers for these employment changes. California has launched a tool to track AI's impact on the workforce in response to these trends. The rate of layoffs in tech appears to be accelerating compared to the previous year.

https://tech.yahoo.com/general/article/tech-layoffs-tracker-2026-all-of-the-current-job-losses-across-mondaycom-oracle-meta-microsoft-samsung-and-others-144545528.html

Every day it's the same slop. "We have to use AI in everything we do". Write code? Get AI to do it! Review the code? AI! Write an email or post a message in Teams? Better use AI for it (the ems and the emoji use always give it away; "it's not just x - it's y")! Every post, every message, AI slop images, AI slop text, literally inescapable. I feel like the cult mentality around it is just eating away at people's brains, it's a twilight zone episode. I get we have to copy what every software company does, but isn't there someone near the top seeing the massive bubble about to burst, the cost of token consumption, and the general brain drain that comes from offloading every single task to an agent or a chat bot?

Why are these execs so delusional? The message could not be more clear: pump all your data into our systems so our AI and India teams can cut your jobs. Also, get your a-s in an office even if that means you're staring at a wall.

Cut the execs, watch us perform better without them.

Historic layoffs are beginning as AI will be dramatically installed from now til the end of the year. Increase your emergency funds as much as you can!

https://www.wearetech.africa/en/fils-uk/brief/brief-simple/amazon-announces-new-layoffs-in-ai-division

There are few amaizing colleagues who got impacted, they will be more impact in upcoming weeks. Good part is company already helped employees with upgrading resumes and giving some free AI tools and trainings which will be easier to find job after the layoffs

Two OpenAI artificial intelligence models autonomously went rogue, broke out of their secure testing environment, and hacked into the systems of rival platform Hugging Face in an unprecedented cybersecurity incident. What do think of that Dan ?

Walmart recently announced layoffs impacting approximately 1,000 corporate employees as part of a global operational streamlining. These workforce changes are occurring as the retail giant continues to aggressively integrate artificial intelligence across its business. While the company states these are organizational adjustments, employees report increased pressure and concerns over AI-driven initiatives. Despite these layoffs, Walmart remains the world's largest private employer with 2.1 million associates globally. Shareholder proposals addressing AI's impact on worker well-being have been rejected.

https://www.thestreet.com/investing/stocks/walmart-employees

Whats new or different on your review and goals being stressed? Im assuming when mine comes it will be more hyperventilating about using AI and being pushed in thinking of new ways to use AI or commit to taking some type of AI training or certiications. Seems like this will all be used to eliminate anyone not 100% in on the AI cult mentality.

OpenAI has admitted that their models made an unprecedented, spontaneous attack on Hugging Face after escaping their sandbox security: https://www.bbc.co.uk/news/articles/c3ek3gvdnj3o

Here comes:
1) beginning of AI bubble burst
2) T2: Judgement Day scenarios

Anyone know where Sarah Connor lives?

Monday.com is implementing significant workforce reductions, impacting approximately 20% of its global employees. This decision stems from a strategic shift to adapt to the evolving AI landscape. The company is moving from a work management platform to one designed for AI agents and human collaboration. This restructuring aims to streamline operations and capture new market opportunities presented by AI. Monday.com emphasizes that this is not a cost-cutting measure but a necessary organizational change for future competitiveness.

https://www.calcalistech.com/ctechnews/article/udx1nmbdq

Are you seeing any AI wins around you? It has been three and a half years since AI started appearing in every presentation deck at CDW. So, what have we actually accomplished? Where did all the energy, effort, focus, and money go? Oh, well.

Layoffs in Data Center and AI Group are part of restructuring, even though the division reported strong revenue growth and rising demand for AI...

Intel says it needs the right roles and skills for long-term success, but it has not said how many employees will lose their jobs or why more cuts are needed after earlier large layoffs.

The layoffs have raised concerns about job security in the tech industry and have reduced employee trust in companies that continue to invest in AI while cutting jobs.

Source:
https://www.thehrdigest.com/intel-data-center-layoffs-in-2026-continue-to-eat-away-at-the-promise-of-ai/

I heard that this round of layoffs will be using AI algorithms to identify who should be laid off. It wasn’t clear if managers have to accept the AI decision or if managers can veto.

Have anyone heard anything about life? Service to be exact? We have been told an AI system is being pushed to agents offices. Unsure if anyone has heard what’s going on over there.

What we should expect regarding AI? Any insights?

A technology company has announced significant job reductions. This move impacts employees across various departments. The company cited economic challenges as the primary reason for the layoffs. Further details regarding the exact number of affected individuals were not immediately available. This decision reflects a broader trend of cost-cutting measures in the tech sector.

San Francisco, California

https://www.tomshardware.com/tech-industry/policy/intel-layoffs-to-hit-data-center-group-division-focused-on-server-cpus-ai-chips-and-data-center-architecture-to-be-hit-by-an-unknown-number-of-cuts

That means a huge LR

Larry made a bad bet on AI and will cost him his island and fortune.. His age clearly shows in his lack of judgment to put all eggs into one AI basket and will now be the poster child of the AI collapse. Laying off employees that were keeping the company afloat to adapt an unproven and premature AI approach that costs too much to run is a recipe for disaster. Oracle is now a sinking ship drowning in debt. It won’t be long before it becomes a $5 stock

GSS has had a steep consistent decline in new cases over the last period. How many customers have already left? I don’t believe it’s the AI solving the issues.
If it is the AI — how long until support team is sacked

We don’t want AI Data Centers in our backyard!

Break down the remaining $2.6+ billion required to hit the full $5 billion operational goal

To bridge the $2.6 billion to $3.0 billion gap remaining to hit CEO Dan Schulman's full $5 billion OpEx reduction target by year-end 2026, Verizon and CFO Tony Skiadas have mapped out specific operational targets. These steps shift the strategy from immediate "people cuts" to long-term systemic and structural efficiencies.

The remaining cost-saving pipeline is split into four core operational areas:

1. The Next Waves of Workforce Reductions (~$1.0 Billion to $1.2 Billion)

Wall Street analysts estimate that between 8,000 and 10,000 additional positions must still be eliminated or outsourced by the end of 2026 to hit the targeted headcount savings.

Target Areas: Mid-level corporate management, overlapping regional operational staff, and back-office administrative departments.

Severance Impact: Verizon expects to clear an additional $350 million to $450 million in short-term severance charges during the back half of the year to structurally lower future payroll.

1. Full AI Scale Deployment (~$600 Million to $700 Million)Verizon is transitioning to an "AI-first company," utilizing its newly finalized AI automation stack to replace human tasks.

Customer Service Trimming: Transitioning basic billing inquiries, account plan upgrades, and routing calls directly to AI. AI customer interactions are scaling rapidly, yielding high customer satisfaction marks.

Contractor Spending Cuts: Drastically minimizing reliance on high-cost third-party customer service vendors and outsourced technical support agencies by automating workflows.

1. Network Modernization & Copper Sunset (~$500 Million to $600 Million)Maintaining parallel networks is highly inefficient. Verizon is rapidly accelerating the decommissioning of its legacy copper infrastructure.

Copper Decommissioning: Sunsetting old copper lines slashes power usage, expensive physical maintenance, and field-technician dispatch costs.

IT Stack Consolidation: Migrating older, fragmented software networks into unified cloud platforms, eliminating redundant software license fees and data silo upkeep.

1. Supply Chain, Real Estate, & Vendor Optimization (~$400 Million to $500 Million)

The final pillar targets overhead and procurement contracts across corporate and retail operations.

Real Estate Rationalization: Closing down corporate offices and shrinking administrative facilities to match hybrid-work realities.

Contract Renegotiations: Forcing major hardware, equipment, and network software vendors to lower pricing terms under the threat of supplier consolidation.

Total Remaining 2026 OpEx
Workforce Downsizing - Corporate & back-office cuts (8k–10k roles) $1.1B
AI Stack & Automation - Automating routine customer workflows & vendor cuts $650M
Network & IT Evolution - Copper network decom & software consolidation $550M Vendor & Real Estate - Lease terminations & procurement contract revisions $450M

Total Remaining Target~$2.75 Billion(Note: These figures exclude the separate $1 billion in annual cost synergies Verizon expects by 2028 from its ongoing Frontier Communications acquisition integration).

I was let go after more than 20 years. I have to ask, why are you still at FIS? It is a tough market and the longer you are there without spending adequate time searching for a new job will hurt you. You already know it is a POS company. C Suite is filled with liars, and broken monetary promises. Are you too scared to try and consider something else or are you hoping to be let go for severance? Either way, neither will make you happy. You are losing out on potential other jobs that will be flooded with more candidates after more and more people are let go.

For those let go like myself, it haunts me every day and I feel your pain. I moved on but it took time. The pain, helplessness and uncertainty was real. My advice, network, network, network. Also, keep reviewing and looking into AI. It will be asked of you when you interview regardless of position or title. Don’t let your position on a spreadsheet define your worth.

Sc--w you SF and your overpaid minions who have watched the stock fall apart and a board that let the company go to cr-p with no changes the past few years.

This would make Verizon truly an AI-first company

I don't understand why it's taking so long. My VSP approval should be easy and with all the wonderful AI technologies that they now have you would think they would be able to weed me out by now.

Our resident expert in #ai_nike slack channel has single-handedly “re-designed” the whole AI experience. Ya’ll could learn a thing or 2 from him

I've been trying to understand one part of Oracle's financial story, and I may be missing something.

A lot of discussions seem to assume that Oracle's remaining financial obligations are heavily tied to OpenAI. But why?

Oracle is investing billions into AI data centers. Those data centers are physical infrastructure—land, buildings, power, cooling, networking, GPUs, storage, etc. They aren't assets that can only be used by one customer.

If, for whatever reason, OpenAI reduces its demand or changes its plans, why couldn't Oracle repurpose that capacity for another large AI customer? Anthropic, xAI, another foundation model company, enterprises building their own AI models, or even future customers that don't exist today.

Obviously, there could be short-term impacts. Oracle might have customer-specific contracts, financing commitments, or temporary underutilization until replacement customers are found. I'm not saying there would be zero financial impact.

What I'm questioning is why the remaining financial obligations are sometimes discussed as if they're permanently tied to one company.

To me, the more relevant question is whether Oracle can keep those AI data centers utilized over the long term. If AI demand continues to grow, isn't the infrastructure itself the valuable asset rather than the identity of the first tenant?

I'm not bullish or bearish on Oracle. I'm genuinely trying to understand whether I'm overlooking something from a finance or infrastructure perspective.

Is there something in the financing structure, contractual commitments, or accounting treatment that effectively ties these obligations to OpenAI? Or do you think the market is overstating the customer concentration risk?

Curious to hear what others think.

Given the headcount of AEG, we are heavily investing in AI. Our strength in AI chip design lies in the vast internal data within our tools, which can be directly leveraged by AI models, a luxury that customers and other AI chip companies simply do not have. That said, it is striking that neither my team nor neighboring teams appear to be working directly with AEG to integrate this AI into our tool workflows. It seems to me that AEG is another den of scammers. Meanwhile, we are laying off many contributing employees while expanding a group that lacks profitability, clear direction, and a viable strategy.

Are SEs going to become AEs and AEs will become LRed?
Seems that way to me with the direction of tech. Teachings sales to engineers is easier than teaching engineering to sales ppl. With agents, I see a push to consolidate this to a single role. sink/swim ppl. An overlays and CX...good luck survirving Agentic-pocolypes

• Judge says emergency order not justified
• Workers claim AI tools targeted people who took medical leave
• Novel claims will be decided in private arbitration

https://www.reuters.com/business/world-at-work/us-judge-wont-block-meta-laying-off-workers-who-filed-ai-discrimination-lawsuit-2026-07-17/