India, July 3 -- Many companies are reporting strong profits, yet layoffs continue. Instead of cutting jobs due to financial losses, businesses are increasingly reducing their workforce to lower costs, improve efficiency and redirect investments toward artificial intelligence (AI), automation and other emerging technologies.

Today, a company can grow its sales and profits while reducing workers in some departments. Companies are moving money and employees away from older business areas and into faster-growing businesses like AI and cloud computing.

Experts say companies are changing where they spend money, not necessarily because the entire business is struggling. This means profitable companies may still shut down teams, offices or dep...