AI blamed for mass tech layoffs
WARN notices show U.S. mass layoffs jumped — over 413,000 positions were cut in 2025 and fresh waves continued into early 2026. — Companies including Block, HP and Crypto.com have publicly tied recent rounds to automation and AI, and Meta is reportedly preparing cuts of up to 20% while analysts caution AI is only one factor behind the purge. (economictimes.indiatimes.com) (businessinsider.com) (thecooldown.com)
Outplacement firm Challenger, Gray & Christmas recorded roughly 1.17 million U.S. job-cut announcements in 2025, a level not fully captured by state WARN filings and layoff trackers that record only mass-notice submissions. (cnbc.com)) On Feb. 26, 2026, Block announced it would eliminate more than 4,000 roles — roughly 40% of its workforce — and CEO Jack Dorsey framed the move as a shift to “intelligence tools” that let much smaller teams do the same work. (cnbc.com)) HP told investors during its fiscal‑2025 results that it expects to cut between 4,000 and 6,000 jobs by the end of fiscal 2028 and projected about $1 billion in gross run‑rate savings from the AI‑driven restructuring. (hp.com)) Crypto.com disclosed a targeted reduction of around 12% of its staff on March 19, 2026, with CEO Kris Marszalek saying the cuts accompany an “enterprise‑wide” integration of AI while the company declined to give an exact headcount. (cnbc.com)) Reuters reported in mid‑March 2026 that Meta executives have discussed workforce reductions that could reach about 20% to help offset expensive AI infrastructure bets and to realize efficiency from AI‑assisted work, though no plan has been finalized. (cnbc.com)) Researchers and commentators note nuances: Challenger attributed roughly 55,000 layoffs to AI in 2025, but Harvard Business Review found many executives are cutting now based on AI’s anticipated potential, and CNBC and other outlets warn some firms may be “AI‑washing” cuts that also reflect over‑hiring, tariffs and traditional cost‑cuts. (cnbc.com))
