Azernews.Az

by Alimat Aliyeva

The number of layoff announcements at U.S. technology companies continues to rise, outpacing other industries as firms ramp up investments in artificial intelligence (AI), AzerNEWS reports.

In March 2026, employers in the tech sector announced 18,720 job cuts, which is 24% higher than in March 2025. As a result, total layoffs in the industry since the beginning of 2026 have exceeded 52,000, marking the highest first-quarter figure since 2023.

Major technology companies such as Meta, Oracle, and Block Inc. are reducing their workforce as they redirect resources toward AI development and automation. Despite this trend, analysts note that the overall level of layoffs in the U.S. remains relatively moderate, with the labor market currently characterized by a phase of “low hiring, low layoffs.”

According to the consulting firm Challenger, Gray & Christmas, while AI-driven restructuring is a key factor behind the cuts, layoffs are also linked to company closures, restructuring efforts, and cost optimization strategies.

Earlier reports by Reuters indicated that Meta could reduce more than 20% of its workforce as part of efforts to offset growing AI-related expenses. Meanwhile, the Financial Times reported that major U.S. corporations—including Amazon, UPS, Dow, Nike, and Home Depot—plan to cut at least 52,000 jobs amid slowing labor market growth and the rapid adoption of AI technologies.

Experts suggest that this wave of layoffs reflects a structural shift in the labor market, where demand is moving away from routine roles toward AI-related and high-skilled positions. While automation may eliminate certain jobs, it is also expected to create new opportunities in fields such as machine learning, data science, and robotics, potentially reshaping the future of work in the coming decade.