This research examines a significant shift in the technology sector known as the "great AI pivot," where major corporations are simultaneously reducing human headcounts and increasing automation investments. Research indicates that companies like Amazon, Meta, and Oracle are liquidating thousands of roles to reallocate capital toward artificial intelligence infrastructure, signaling a structural transformation rather than a temporary economic correction. This transition carries substantial risks for both organizational health and individual wellbeing, including the loss of institutional knowledge and severe psychological distress for displaced workers. To mitigate these negative impacts, the research advocates for evidence-based leadership strategies such as transparent communication, fair procedural justice, and robust reskilling programs. Ultimately, the analysis suggests that long-term corporate resilience depends on redefining the psychological contract between employers and employees to prioritize continuous learning and human-AI collaboration.

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