Tech layoffs surge amid AI push — but there’s more to the story

(NewsNation) — Tech layoffs have surged to their highest level in years, but cuts attributed to AI may be driven more by investment in the technology than by it replacing workers.

Nearly 90 tech companies announced layoffs affecting roughly 82,000 employees in the first quarter, up from about 30,000 a year earlier and the largest quarterly total since early 2023, according to the tracking site Layoffs.fyi.

Meta last Thursday said it will cut 10 percent of its workforce, or roughly 8,000 employees, as it looks to run more efficiently and offset other investments. That same day, Microsoft said it was offering early retirement to thousands of long-serving employees.

The workforce reductions follow similar moves by Amazon and Oracle and come as major tech companies pour hundreds of billions of dollars into AI infrastructure.

“Companies are shifting budgets toward AI investments at the expense of jobs,” Andy Challenger, chief revenue officer for Challenger, Gray & Christmas,........

© The Hill