The AI layoff wave is becoming a powder keg
Tech companies are posting record profits while laying off tens of thousands, citing AI. Nearly 150,000 people have been affected this year, with layoffs occurring 44% faster than last year. Last month saw the highest monthly cuts in two years, and AI has been the top reason for layoffs across industries for three consecutive months.
Something strange is happening in tech right now. Companies are posting record profits and revenue while laying off tens of thousands of people, citing AI as the official explanation. So far this year, there have been an estimated 363 layoffs at tech companies this year, affecting nearly 150,000 people — a pace of about 974 people per day, 44% faster than last year — according to TrueUp, a tech job board and recruiting platform that also runs one of the most widely cited tech layoff trackers.
Tech layoffs hit their highest single month in two years last month, with nearly 40,000 cuts, and AI was the most-cited reason for layoffs across every industry for the third month running, according to outplacement firm Challenger, Grey & Christmas.