Tech Layoffs May Be Driven by Costs and Overstaffing, Not Just AI

Sat, 02 May 2026 23:06:00 +0200

Despite the recent wave of headlines blaming artificial intelligence for layoffs at major tech companies, the reality may be more nuanced. Amazon, Google, and Meta currently employ roughly the same number of people as during the hiring boom of 2022, according to company disclosures. While AI initiatives are prominent, the rising costs of technical talent and other operational expenses have often outpaced revenue growth. Experts suggest that AI may serve as a convenient excuse for CEOs to justify workforce reductions amid economic pressures. Investor Marc Andreessen noted that layoffs often address overstaffing and economic shifts, with AI providing a socially acceptable rationale. OpenAI CEO Sam Altman echoed this sentiment, saying that while AI is blamed for job losses, it is rarely the primary cause. Analysts argue that the path to an AI-ready workforce is complex, and the largest tech firms have been cautious about cutting too deeply. In essence, while AI could influence future hiri