Meta, Microsoft, Amazon and Alphabet are together expected to spend nearly $700 billion this year on AI infrastructure, CNBC said.
More than 92,000 tech workers have already lost jobs in 2026, taking total layoffs since 2020 to almost 900,000, according to Layoffs.fyi data cited by CNBC
- Meta and Microsoft announce over 20,000 job cuts this week
- Tech firms spend billions on AI while reducing workforce costs
- Demand for AI roles rises as general IT hiring slows
Over 20,000 potential job cuts announced by Meta and Microsoft this week could be only the beginning of a broader labour shake-up in the technology industry, CNBC reported, as companies pour billions into artificial intelligence while reducing workforce costs.
Meta, Microsoft, Amazon and Alphabet are together expected to spend nearly $700 billion this year on AI infrastructure, CNBC said. At the same time, several firms are using AI tools to improve efficiency, streamline teams and continue correcting pandemic-era overhiring.
More than 92,000 tech workers have already lost jobs in 2026, taking total layoffs since 2020 to almost 900,000, according to Layoffs.fyi data cited by CNBC.
Anthony Tuggle, an executive coach and former AI professional, said the shift appears long term. “This represents a fundamental structural shift rather than a temporary market correction,” he said, as quoted by CNBC. “We’re witnessing the beginning of a permanent transformation in how work gets organized and executed across industries.”
Meta told staff it would cut 10% of its workforce, or around 8,000 jobs, while also cancelling plans to fill 6,000 open roles. Microsoft is offering voluntary buyouts to eligible US employees, CNBC reported.
The trend is expanding beyond Silicon Valley giants. Nike announced layoffs affecting about 1,400 workers, many in technology functions. Snap recently cut 16% of its workforce, while Salesforce earlier eliminated 4,000 customer support roles. Oracle has also announced thousands of job cuts as it ramps up AI spending, CNBC added.
Hiring is slowing for entry-level and general IT positions, while demand remains strong for AI engineers and specialised roles, CNBC said, citing industry studies. Salaries in much of the sector have stayed flat except in high-demand AI categories.
Rajat Bhageria, CEO of Chef Robotics, said the eventual benefits of AI remain uncertain. “We’re only starting to understand how much of our daily work AI can handle for us across all different kinds of jobs,” he said, as quoted by CNBC.
Glassdoor chief economist Daniel Zhao said workers are becoming more cautious. “Many workers do feel stuck right now,” he said, as quoted by CNBC.