Tech Layoffs in US: AI Is Reshaping the Industry as Big Companies Cut Thousands of Jobs

AI-driven restructuring is reshaping the US tech industry as major firms like Meta, Microsoft and Amazon continue layoffs while investing billions in Artificial Intelligence and automation technologies.

The big tech companies in America are cutting jobs like never before, and it looks like the main reason is the rise of Artificial Intelligence (AI). Financial experts are saying this isn't just a temporary phase, but a permanent change in the industry.

Since 2020, a massive 9,00,000 people have lost their jobs in the tech sector. Just look at the big names – tech giants Meta and Microsoft alone have shown the door to 20,000 employees. And they're not the only ones. Companies like Amazon, Google, Oracle, Salesforce, Nike, and Snap are also on the list. The reasons are twofold: the big push for AI and hiring too many people during the COVID-19 pandemic.

Meta is already planning to let go of another 8,000 employees and has decided not to fill 6,000 new positions. Microsoft is encouraging 7% of its American workforce to take voluntary retirement by offering them various incentives. Nike has straight up cancelled 1,400 job roles.

Pouring Money into AI

On one hand, companies are firing people to cut costs. On the other, they are pouring huge amounts of money into AI. It's estimated that by 2026, the combined investment by Alphabet, Microsoft, Meta, and Amazon will be a staggering ₹66 lakh crore. At Oracle, the job cuts are expected to save the company between ₹75,000 crore and ₹94,000 crore. The productivity gains are also huge. Companies that once needed 250 employees to make ₹472 crore in revenue are now earning the same amount with just 50 workers.

This whole situation is making employees very nervous. According to the Glassdoor Employee Confidence Index, which measures how hopeful US employees are about their company's future, confidence in the tech sector has dropped by 6.8% to just 47.2% in March. It's said that this fear is causing many to quit their jobs.

Iran Responds to US Ceasefire Proposal

Islamabad: In other news, Iran has sent its response to a US proposal to end the war, using Pakistan as a go-between, according to Iran's state news agency IRNA. Pakistan has also confirmed this development.

According to a report on Sunday, the first phase of the proposed plan focuses on ending the war and ensuring ‘maritime security’ in the Gulf and the Strait of Hormuz.

A diplomatic source in Pakistan confirmed that Iran's response has been passed on to the US. However, Pakistan's Prime Minister Shehbaz Sharif has refused to share any details of what Iran's proposal contains. Washington had reportedly sent a 14-point proposal to Iran earlier this week.