TECH

US tech companies have cut 140,000 jobs this year while accelerating AI investments

US technology companies have cut approximately 140,000 jobs since the beginning of the year, according to the *Financial Times*. This trend coincides with a surge in corporate investment in artificial intelligence (AI).

An analysis by the *Financial Times*, based on company filings and data from executive outplacement firm Challenger, Gray & Christmas, indicates that the sector accounted for more than a third of all layoffs announced in the country during this period. According to the British newspaper, Amazon, Oracle, Meta, and Microsoft are responsible for nearly 50,000 of these cuts—equivalent to about 6% of their corporate workforces.

Analysts interviewed by the *Financial Times* suggest the layoffs reflect both a correction following a hiring spree and a need to redirect resources toward the AI ​​race.

According to the newspaper, Amazon, Alphabet, Meta, and Microsoft are expected to invest a combined $725 billion this year in infrastructure, primarily data centers. Oracle, meanwhile, plans to allocate another $70 billion to similar facilities to serve clients such as OpenAI.

Some companies attribute part of the job cuts to productivity gains driven by artificial intelligence. Data from Challenger shows that approximately 170,000 corporate job cuts have been linked to AI since May 2023. Block, led by Jack Dorsey, is one example: the company laid off nearly half of its roughly 10,000 employees in May, stating in a memo to staff that AI was altering its staffing needs.

Despite record investments in artificial intelligence, US tech companies are continuing to reduce their workforce at a rapid pace in 2026. The sector has already eliminated approximately 140,000 jobs since the beginning of the year, according to an analysis by the Financial Times, based on company disclosures and data from Challenger, Gray & Christmas, a labor market research firm.

According to the analysis, published on Saturday, July 25, 2026, the tech sector accounted for more than a third of all job cuts announced in the US during the same period. Amazon, Oracle, Meta, and Microsoft alone accounted for approximately 50,000 of the total job reductions, representing about 6% of their combined workforce.

Major tech companies are ramping up their spending on artificial intelligence infrastructure. Amazon, Alphabet, Meta, and Microsoft are expected to spend around $725 billion on data center construction this year. Oracle also plans to invest $70 billion in new data centers to serve its clients, including OpenAI.

Oracle ended its 2026 fiscal year with approximately 21,000 fewer employees than the previous year, following cuts announced in March. This came amid pressure on its balance sheet, which led Standard & Poor's to downgrade its credit rating to just one notch above junk status due to weak cash flow and uncertainty surrounding the future returns on its AI investments.

Microsoft also eliminated around 4,800 jobs in July, mostly within its Xbox gaming division, as part of a restructuring plan three years after its $75 billion acquisition of Activision Blizzard.

Data from Challenger indicates that around 170,000 jobs in companies have been linked to artificial intelligence since May 2023. Some companies have used this justification to explain their decisions, as Jack Dorsey, CEO of Block, said that artificial intelligence changed the company's workforce needs, after it laid off about half of its 10,000 employees.

However, researchers interviewed by the *Financial Times* dispute this explanation, suggesting it may serve to justify adjustments necessitated by the excessive hiring of recent years.

At the same time, major tech companies have begun to avoid directly linking layoffs to AI. Amazon and Microsoft, for instance, have stated that the implementation of the technology was not the reason for reducing their workforces. Despite the reduction in job openings at major companies, this trend is not reflected across the entire sector. According to the FT, AI-focused startups such as OpenAI and Anthropic continue to expand their teams, helping to mitigate some of the impact of the layoffs.

mundophone