The tech sector is pouring billions of dollars into AI. But it keeps laying off humans

 

The tech sector is pouring billions of dollars into AI. But it keeps laying off humans

The tech sector has kicked off the new year with a spate of fresh job cuts that are coming at the same time as the industry is doubling down on investments into artificial intelligence.While AI tools putting workers out of jobs has been a major point of anxiety in Silicon Valley and beyond over the past year, not all the recent layoffs in the tech industry are directly linked to AI tools simply replacing workers.

But many of the recent job cut announcements have come on the heels of those same companies disclosing major investments into AI technology as they look to reallocate resources, and a growing number of tech firms have explicitly cited AI as a reason for rethinking head counts. The continued labor upheaval unfolding in the very industry creating AI could point to more unrest to come as the technology is forecast to reshape the broader business landscape in the years ahead.

More than 5,500 tech layoffs less than two weeks into 2024

The latest rounds of tech job cuts are occurring across a range of roles and in both Big Tech companies and smaller startups. Tech giants Google and Amazon both announced sweeping layoffs this week impacting hundreds of workers across various business divisions. News of the job cuts at Google and Amazon come months after both companies separately announced multi-billion-dollar investments into AI startup Anthropic.

Also this week, social platform Discord said it was trimming 17% of its staff. Unity Software, the maker of technology used in popular mobile games such as Pokemon Go, said it was cutting 25% of its workforce. And the language-learning app Duolingo said it laid off around 10% of its contract workers.