Posted 2/26/2024, 11:00:00 AM
Tech Layoffs Approach 40,000 as Companies Pivot to AI, While Hiring Boom Expected by 2026
- Major tech companies like Cisco, PayPal, Microsoft, and eBay have cut nearly 40,000 jobs so far in 2023 as they invest heavily in AI
- The rise of AI tools like ChatGPT is causing companies to shift resources and priorities, resulting in layoffs of non-AI talent
- Interest rate hikes by the Federal Reserve have also made tech companies less appealing to investors compared to safer options
- Many tech companies overhired during the pandemic based on trends that did not continue post-COVID
- After significant layoffs in late 2022, the industry likely done with cuts for now and is poised for an AI-fueled hiring boom through 2026