Tech Explained: Here’s a simplified explanation of the latest technology update around Tech Explained: US job-cut announcements in tech keep rising with AI adoption – Silicon Valley in Simple Termsand what it means for users..
By Julia Fanzeres, Bloomberg
Layoff announcements at technology companies continued to mount in March, leading other industries in overall US job-cut plans as investment in artificial intelligence catalyzes leaner staffing levels.
Employers in the technology sector announced 18,720 job cuts, up more than 24% from March 2025, according to outplacement firm Challenger, Gray & Christmas Inc. That brought the industry total to more than 52,000 so far this year, the most first-quarter cuts since 2023.
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Overall, US-based employers announced 60,620 job cuts last month, up more than 25% from February. For all industries, AI accounted for a quarter of layoff announcements.
“Companies are shifting budgets toward AI investments at the expense of jobs,” Andy Challenger, the company’s chief revenue officer, said in a statement. “The actual replacing of roles can be seen in technology companies, where AI can replace coding functions. Other industries are testing the limits of this new technology, and while it can’t replace jobs completely, it is costing jobs.”
The figures underscore growing concerns that AI will lead to large-scale labor market disruption, especially for white-collar workers. In the tech industry, AI models promise to make coding far easier and less labor intensive.
Tech companies like Meta Platforms Inc., Oracle Corp., and Jack Dorsey’s Block Inc. are undertaking workforce reductions as resources get redirected to investment in AI. Still, overall layoff rates have remained low, with the labor market still in a “low-hire, low-fire” state.
Total layoff announcements were down 78% in March from the same month last year. The report Thursday also showed that hiring intentions almost tripled from the previous month. Still, hiring plans so far this year are down from the same period in 2025, consistent with soft labor demand.
Data out Wednesday from ADP Research showed payrolls at US companies increased by 62,000 in March after a similar increase a month earlier.
While AI topped the list of reasons for layoff announcements, employers also cited closings and restructures, as well as market and economic conditions, according to Challenger.
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