Despite the tech sector investing billions of dollars into AI, it continues to lay off workers

The tech sector has announced a wave of new job cuts at the beginning of the year, despite the industry’s increased focus on investing in artificial intelligence.
Although the use of AI tools has been a major concern in the tech industry, not all recent job cuts can be attributed to the replacement of workers by AI.
Several tech companies have announced job cuts recently, coinciding with their investments in AI technology and a growing number of firms citing AI as a reason for reconsidering their headcount.
The ongoing labor disputes in the industry that created AI could indicate future unrest, as the technology is expected to reshape the business landscape in the coming years.
More than 5,500 tech layoffs less than two weeks into 2024
The latest rounds of tech job cuts are occurring across a range of roles and in both Big Tech companies and smaller startups.

Google and Amazon, two tech giants, have recently announced significant job cuts affecting hundreds of workers across different business divisions.

These job cuts come months after both companies announced multi-billion-dollar investments in AI startup Anthropic.

This week, Discord, Unity Software, and Duolingo have all announced job cuts. Discord is trimming 17% of its staff, Unity Software is cutting 25% of its workforce, and Duolingo has laid off approximately 10% of its contract workers.

There have been more than 5,500 tech employees who have lost their jobs less than two weeks into 2024, according to data compiled by layoff

The tech industry has experienced a painful two years, with hundreds of thousands of workers losing their jobs due to the pandemic-induced demand reset.

The latest job cuts in the industry only add to this unfortunate trend

According to Layoffs.fyi data, the tech industry recorded 262,682 layoffs in 2023, following 164,969 cuts in the previous year.

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