Market Cheers 'Leaner' Tech Layoffs
Wall Street is rewarding tech companies that aggressively restructure for AI. While giants like Amazon are cutting thousands, investors have also cheered major workforce reductions at companies like Block. Meanwhile, legacy players seen as slow to pivot are getting hammered, with IBM shares falling 13% and Atlassian dropping 73% over the past year.
The wave of tech job cuts has continued from previous years, with U.S.-based tech companies shedding around 127,000 jobs in 2025 and over 60,000 more in the first two months of 2026 alone. This trend follows the more than 191,000 workers laid off in 2023 and 93,000 in 2022. Block CEO Jack Dorsey explicitly linked his company's decision to cut nearly
