In 2026, the number of layoffs in the technology sector has already surpassed the total for the previous year. In the first seven months of 2026, tech companies cut more than 124,000 jobs—more than in all of 2025. The main drivers behind these cuts have been large-scale investments in artificial intelligence (AI) and workforce optimization. Major companies such as Oracle, Amazon, Dell, and Meta have carried out mass layoffs, each letting go of tens of thousands of employees. Smaller firms, including Workday, GitLab, and Robinhood, have also eliminated hundreds of positions. In California alone, over 16,000 tech jobs have been lost since the start of the year, with about a fifth of those layoffs coming from Meta.

The Impact of AI Investments

A significant portion of these layoffs coincided with increased spending on AI infrastructure, including the expansion of data centers, the purchase of specialized chips, and the integration of AI processes into existing workflows. Oracle plans to invest $90 billion in AI in the next fiscal year, despite a downgrade in its credit rating due to rising debt. Meta and Amazon have also raised their capital expenditure forecasts for 2026 to hundreds of billions of dollars. In addition to AI adoption, companies cite workforce optimization, overhiring during the pandemic, and efforts to reduce bureaucracy as reasons for the cuts.

Long-Term Labor Market Trends

Despite the current volatility, the long-term impact of AI on employment remains a topic of debate. An analysis spanning six continents shows that companies with higher levels of AI adoption are hiring faster than those where AI is less prevalent. This is linked to increased productivity and the emergence of new types of jobs. For example, the unemployment rate in San Francisco dropped to 3.7% this year, even amid layoffs, as companies in the AI sector continue to recruit talent.

Open Questions

At the same time, philosophical questions persist about the role and consequences of widespread AI adoption:

• How does the mass use of AI affect the well-being of society?
• Could dependence on AI lead to a decline in critical thinking skills?
• Who is responsible if AI causes harm: the developer, the company, the user, or the AI itself?
• How should wealth be distributed if AI creates abundance?
• How can people adapt to a world where machines increasingly perform intellectual work?