Despite more investment in AI, tech industry is still prone to layoffs
The tech industry has started the new year with a series of significant job cuts, coinciding with a heightened focus on investments in artificial intelligence (AI), according to a new report by CNN.
While concerns about AI displacing workers have been persistent in Silicon Valley and beyond in the past year, not all recent tech layoffs can be attributed solely to AI replacing human workers, the report said.
Many of these recent job cut announcements have followed substantial investments in AI technology by the same companies, leading to resource reallocation. A growing number of tech firms have explicitly mentioned AI as a factor influencing their reconsideration of workforce sizes.
The ongoing workforce disruptions within the industry responsible for pioneering AI may foreshadow more upheaval in the future as AI continues to reshape the broader business landscape.
The latest wave of tech job cuts spans various roles and affects both major tech corporations and smaller startups. Notably, industry giants Google and Amazon recently announced extensive layoffs, impacting hundreds of employees across various business divisions.
In addition to Google and Amazon, social platform Discord revealed a 17% reduction in its workforce this week. Unity Software, known for its technology used in popular mobile games like Pokemon Go, announced a 25% staff reduction. The language-learning app Duolingo also reported layoffs, affecting approximately 10% of its contract workers.