Layoffs Under the Guise of AI: Why Tech Giants Are Cutting Staff
Unexpected and contradictory processes are being observed in the global technology industry. While major companies report record profits and revenues, they continue to lay off tens of thousands of employees. The introduction of AI technologies is often cited as the primary reason for these cuts. However, industry experts suspect that other economic factors are hidden behind this excuse. This is reported by Techcrunch.com reports .
According to TrueUp platform data, there have been over 363 layoff waves in tech companies this year, leaving nearly 150,000 people unemployed. This is 44 percent higher than last year's figure, meaning an average of 974 professionals lose their jobs every day. A report by the consulting firm Challenger, Gray & Christmas notes that layoffs reached a two-year high last month, with AI cited as the primary reason across almost all sectors.
Is AI a convenient excuse to cover up mistakes?
Many analysts consider AI to be a "convenient mask" for firing employees. For example, Block CEO Jack Dorsey initially explained the layoffs by saying AI tools were changing work styles. However, he later had to admit that the company had over-hired during the pandemic. Renowned investor Marc Andreessen agrees, stating that most major companies have 25 to 75 percent excess staff and are now using AI technology as a "magic excuse" to fix their own mistakes.The situation at Uber is also noteworthy. While the company cut 23 percent of its HR staff, it insisted it was not related to AI. But this statement came after reports that Uber's CTO had exhausted the company's 2026 AI budget in just four months and had to restrict engineers from using tools like Claude Code. This indicates that financial resources within the company are being reallocated.
The gap between wealth and unemployment
While employees are being laid off, tech leaders and AI startups are becoming wealthy at an unprecedented rate. For example:- Chip manufacturer Cerebras Systems saw its shares rise 68 percent on its first day on the NASDAQ exchange, turning its founders into billionaires;
- SpaceX's market valuation reached $2.1 trillion, which translated into paper millions for thousands of employees;
- Companies like OpenAI and Anthropic are valued at around $1 trillion.
Currently, the cost of living, health insurance, and mortgage rates are rising sharply in the US and other developed countries. The decline in job opportunities for tech professionals is exacerbating economic difficulties. Experts believe that while AI does increase efficiency, the current layoffs are more of a strategic move aimed at optimizing corporate costs and reporting to shareholders.
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