Tech companies are increasingly citing the implementation of artificial intelligence as a reason for staff reductions, even as their businesses continue to grow. This was reported by TechCrunch.

The publication notes that in some cases, AI is genuinely changing work structures, while in others, it serves as a convenient excuse for restructuring, cutting costs, and addressing the consequences of over-hiring during the pandemic.

Tracker Data

As of TechCrunch's publication, citing TrueUp, there had been 363 rounds of layoffs in the tech sector since the beginning of 2026, affecting nearly 150,000 people, with an average rate of 974 employees laid off per day.

By June 15, the TrueUp tracker reported 389 layoffs and 151,998 job losses, with an average rate of 916 people per day.

Source: TrueUp.

Additionally, TechCrunch referenced data from consulting firm Challenger, Gray & Christmas: in May, U.S. employers announced 97,006 layoffs, with the tech sector accounting for 38,242 of those—the highest since August 2024.

For the third consecutive month, artificial intelligence has been cited as the most common reason for layoffs. Since the start of 2026, employers have linked it to 87,714 layoffs, or 22% of all announced job cuts.

Companies Making Cuts

Examples mentioned by TechCrunch include Block, Cloudflare, Meta Platforms, and GitLab.

In February, Block laid off over 4,000 employees, reducing its workforce from more than 10,000 to under 6,000. CEO Jack Dorsey stated that AI tools are changing the principles of organization and management. However, he later acknowledged that Block had over-hired during the pandemic.

In May, cloud and network infrastructure provider Cloudflare announced it would cut more than 1,100 employees. The company stated that internal AI usage had increased by over 600% in three months, with the team launching thousands of AI agent sessions daily.

According to Reuters, on May 20, Meta Platforms planned to initiate the first wave of layoffs affecting about 10% of its workforce, or around 8,000 people. Sources linked this decision to a company restructuring around AI and efficiency improvements. Meta declined to comment on the timing and scale of the layoffs.

Software development platform GitLab reported a reduction of approximately 14% of its workforce, or 350 employees. The company also decided to exit 22 countries to reduce its geographical footprint by about 37%. In the same report, GitLab highlighted the development of the GitLab Duo Agent Platform and integrations with Anthropic's Claude models, Amazon Bedrock, and Google Cloud Vertex AI.

Other known layoffs include:

  • According to media reports, in April, Oracle began laying off thousands of employees amid falling stock prices and significant capital expenditures on AI infrastructure;
  • Snap planned to cut about 1,000 staff members—approximately 16% of its global team.

"Silver Bullet" for Layoffs

Venture capitalist Marc Andreessen, speaking with podcaster Harry Stebbings, stated that large companies often remain bloated after periods of aggressive hiring. He referred to AI as a "silver bullet" for justifying layoffs, adding that many of these cuts are not due to automation but rather managerial errors and overstaffing.

TechCrunch noted that this narrative heightens social tension. On one hand, companies are laying off tens of thousands of employees while citing AI, which may increase distrust in the industry. On the other hand, the growth of the AI market is creating substantial wealth for founders, investors, and early employees of AI companies.

In February, OpenAI CEO Sam Altman accused large companies of using AI as a pretext for layoffs. He believes that the impact of automation on the labor market will only grow over time.

In May, the Intermediate People's Court of Hangzhou ruled that companies cannot lay off employees solely due to their replacement by artificial intelligence.