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New Delhi: The tech world is going through another wave of job cuts, and artificial intelligence (AI) is being seen as the main reason. Almost every day, big companies are announcing layoffs and talking about how AI is changing the way work is done.
Companies like Meta and Microsoft are at the center of this shift. Meta is planning to cut about 10% of its workforce, which means nearly 8,000 jobs. At the same time, the company is still investing heavily in AI. CEO Mark Zuckerberg is focusing on building what he calls “superintelligence,” as Meta competes with Amazon, Google, Microsoft, and OpenAI.
Meanwhile, Microsoft is also looking to reduce its workforce, but in a softer way. Reports say the company is offering voluntary buyouts to some employees, especially in the U.S. Though Microsoft has not officially confirmed details, it shows that even stable companies are trying to cut costs.
One big reason behind all this is the huge spending on AI. Meta alone spent over $22 billion in one quarter on data centers and AI systems. For the full year, it may spend up to $135 billion. Despite such high investment, jobs are still being cut, which raises an important question, if AI is helping companies grow, why are people losing jobs?
Experts say companies are using AI to do work that earlier needed large teams. This helps them save money and work faster. But some believe AI is also being used as an excuse.
Sam Altman has called this “AI washing.” This means companies may blame AI for layoffs even if they were already planning to cut jobs. During the pandemic, many tech firms hired too many people. Now, as growth slows down, they are reducing staff—and AI gives them a simple reason to explain it.
There is also a market angle. When companies talk about AI, investors often react positively. For example, Block Inc. cut around 4,000 jobs citing AI, and its stock price went up soon after. This shows that AI news can improve a company’s image and value.
However, workers are worried. A survey of about 5,000 Americans found that 71% fear AI could take away jobs permanently. Around 40% of companies also say they may reduce staff because AI can do certain tasks.
Even Google has said that AI is making its engineers about 10% faster. This increase in speed is similar to the level of job cuts we are seeing, which suggests a direct link.
So, what does this mean for the future?
Right now, AI is not fully replacing people, but it is clearly changing how work is done. Employees are expected to do more work in less time, often using AI tools. The pressure is increasing, and job roles are evolving quickly.
The tech industry is feeling this first, but it may not stop there. Other sectors could also see similar changes in the coming years.
For now, the situation is somewhere in the middle, AI is creating real change, but it is also being used as a convenient story. The bigger impact on jobs and industries is still unfolding.
English (US) ·