Tech layoffs surge amid AI push — but there’s more to the story
Nearly 90 tech companies announced layoffs affecting roughly 82,000 employees in the first quarter, with AI cited as a factor in around 13% of job cut plans. Major tech companies like Meta and Microsoft are cutting jobs as they invest heavily in AI infrastructure.
Tech companies have announced significant layoffs in the first quarter, with nearly 90 companies cutting around 82,000 jobs. Meta cut 10% of its workforce, or roughly 8,000 employees, while Microsoft offered early retirement to thousands of long-serving employees. These moves follow similar layoffs by Amazon and Oracle as major tech companies invest heavily in AI infrastructure. According to Challenger, Gray & Christmas, AI has been cited as a factor in around 27,600 job cuts, or about 13% of all job cut plans so far in 2026. The layoffs may be driven more by investment in AI technology than by AI directly replacing workers. Companies are shifting budgets towards AI investments at the expense of jobs, a trend dubbed 'AI-washing' as companies exaggerate their AI adoption to appear more innovative.
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