AI cited as top reason for surging tech layoffs, but skepticism grows over its role as a convenient excuse
By
Connie Loizos
Summary
Tech layoffs hit a two-year high with nearly 40,000 cuts in a single month, with AI cited as the primary reason across industries for three consecutive months. However, growing skepticism suggests AI is being used as a convenient cover story rather than the true cause of layoffs. The article highlights pushback exemplified by Block (Square) after laying off nearly half its workforce, and notes the stark contrast between mass layoffs and the immense wealth accumulation by a small cohort of AI insiders.
Source
bskyAI cited as top reason for surging tech layoffs, but skepticism grows over its role as a convenient excusebuff.lyKey quotes
· 4 pulledTech layoffs hit their highest single month in two years last month, with nearly 40,000 cuts
AI was the most-cited reason for layoffs across every industry for the third month running
There's growing skepticism that AI is really the culprit, though — that it's more of a convenient cover story than the actual cause
At the very moment that tens of thousands of workers are being shown the door, a small cohort of AI insiders is becoming wealthy on a scale that's hard to comprehend
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