Should just artificial intelligence be blamed for tech layoffs?

Employees at Big Tech companies across the globe are facing a steady stream of job reductions lately. Last year alone, nearly 100,000 tech employees lost their jobs in just US-based companies, according to different media reports.

In 2024, Google laid off more than 200 employees from its core engineering teams. In an earlier internal meeting, Chief Executive Sundar Pichai said that the constant layoffs are necessary to enhance velocity of the Silicon Valley giant.

Later in October, Meta – led by Mark Zuckerberg – started making similar job cuts across different segments. The company had already initiated multiple layoffs in June. Many other tech companies are also stressing the need for restructuring efforts.

Is artificial intelligence going to replace our jobs?

Speaking to Prof Damodaran at NY University, The Hindu reported that the long trend of tech layoffs is actually a correction for a decade-long trend of additional hiring in the sector. This is not really about artificial intelligence.

Most of the layoffs are happening at places that hired much before artificial intelligence came under the spotlight. This is a story of accountability catching up at young tech companies that sold themselves on potential but have never have been able to monetise it.

During the early days of artificial intelligence, many people thought that the modern technology is going to replace their jobs. But experts stress that saving a handful of specific sectors, the tool has not yet expanded enough to replace the bulk of humans.