Tech jobs bust hits amid layoffs, not AI yet

TL;DR

American tech firms including Oracle, Block, Amazon and Meta are cutting thousands of jobs amid stagnant employment.
The magnificent seven tech giants scarcely grew payrolls from 2022 to 2025, while San Francisco employment fell 3% since early 2023.
Layoffs stem from economic pressures rather than AI displacement, though bosses cite a coming generational AI boom.[[1]](https://www.economist.com/finance-and-economics/2026/04/13/the-tech-jobs-bust-is-real-dont-blame-ai-yet?etear=nl_today_2)[[2]](https://www.economist.com/finance-and-economics/2026/04/13/the-tech-jobs-bust-is-real-dont-blame-ai-yet)

The story at a glance

American tech companies are slashing jobs, with Oracle announcing thousands of cuts, Block reducing nearly half its workforce at over 4,000 roles, and Amazon and Meta announcing redundancies. The magnificent seven tech giants—Apple, Microsoft, Alphabet, Amazon, Meta, Nvidia and Tesla—have barely expanded payrolls since 2022. This comes as San Francisco, the tech hub, sees total employment drop 3% since early 2023, reported now amid ongoing layoff waves and debate over AI's role.[[1]](https://www.economist.com/finance-and-economics/2026/04/13/the-tech-jobs-bust-is-real-dont-blame-ai-yet?etear=nl_today_2)

Key points

Oracle, pushing into cloud computing, recently cut thousands of jobs.[[1]](https://www.economist.com/finance-and-economics/2026/04/13/the-tech-jobs-bust-is-real-dont-blame-ai-yet?etear=nl_today_2)
Block, once a payments favourite, is eliminating more than 4,000 positions, or nearly half its staff.[[1]](https://www.economist.com/finance-and-economics/2026/04/13/the-tech-jobs-bust-is-real-dont-blame-ai-yet?etear=nl_today_2)
Amazon and Meta have both revealed plans for redundancies.[[1]](https://www.economist.com/finance-and-economics/2026/04/13/the-tech-jobs-bust-is-real-dont-blame-ai-yet?etear=nl_today_2)
Payrolls at the magnificent seven tech firms scarcely grew at all from 2022 to 2025.[[1]](https://www.economist.com/finance-and-economics/2026/04/13/the-tech-jobs-bust-is-real-dont-blame-ai-yet?etear=nl_today_2)
Tech and other employment in San Francisco has declined by 3% since the start of 2023.[[1]](https://www.economist.com/finance-and-economics/2026/04/13/the-tech-jobs-bust-is-real-dont-blame-ai-yet?etear=nl_today_2)
Bosses blame an AI boom for making human workers redundant, but evidence points to wider economic factors so far.[[3]](https://www.linkedin.com/posts/markamontgomery_the-tech-jobs-bust-is-real-dont-blame-ai-activity-7449552664054628352-44q8)

Details and context

Tech firms hired aggressively during the pandemic but have since refocused amid higher interest rates and slower growth. A Bank of England survey across America, Australia, Britain and Germany found AI had "essentially zero" impact on employment over the past three years.[[3]](https://www.linkedin.com/posts/markamontgomery_the-tech-jobs-bust-is-real-dont-blame-ai-activity-7449552664054628352-44q8) Layoffs correct overstaffing rather than reflect immediate AI replacement.

Even as AI hype grows, tech jobs persist while spreading to other sectors like real estate (up 75%) and construction (up nearly 100%).[[3]](https://www.linkedin.com/posts/markamontgomery_the-tech-jobs-bust-is-real-dont-blame-ai-activity-7449552664054628352-44q8) The article cautions against blaming AI yet, noting tech employment stagnation predates widespread adoption.

Key quotes

"A recent survey of firms across America, Australia, Britain and Germany by Ivan Yotzov of the Bank of England and colleagues finds that over the past three years ai has had 'essentially zero' impact on employment."[[3]](https://www.linkedin.com/posts/markamontgomery_the-tech-jobs-bust-is-real-dont-blame-ai-activity-7449552664054628352-44q8)

Why it matters

Tech layoffs signal cooling in a sector that drives much of global growth, hitting hubs like San Francisco hardest. Workers face tougher job hunts and slower wage gains, while firms redirect cash to AI infrastructure over hiring. Watch if AI adoption accelerates job cuts or if economic recovery boosts payrolls.