As tech layoffs stretch into 2026, role of AI in job cuts remains an open question

The tech industry continues to grapple with significant layoffs, which have extended into 2026, raising concerns about the sector's stability and the evolving role of artificial intelligence. In 2025, over 123,941 employees were let go from 269 tech companies, marking a decrease from the 150,000 job cuts across 549 firms in 2024. This downward trend in the number of layoffs, however, does not diminish the anxiety surrounding job security, as companies increasingly lean on AI technologies to streamline operations. As firms adopt AI-driven solutions, questions arise about the extent to which these technologies contribute to workforce reductions. While AI promises enhanced efficiency and cost savings, it also stirs debates about its impact on employment. Some industry experts argue that AI could create new job opportunities in tech, yet the immediate reality for many employees remains uncertain as companies prioritize automation over human labor in certain areas. The ongoing layoffs and the role of AI in these decisions highlight the need for a balanced approach that considers both technological advancement and workforce sustainability. Policymakers and industry leaders are urged to collaborate on strategies that support worker retraining and education, ensuring that the benefits of AI are shared equitably. As the industry navigates these challenges, the dialogue surrounding AI and employment will be crucial in shaping the future of work in tech.

— Authored by Next24 Live