Tech CEOs blames AI to justify job cuts

Major technology companies including Google, Amazon, Meta, Pinterest, and Atlassian are cutting jobs in 2026, citing artificial intelligence (AI) as a driver of efficiency. Executives say AI tools now allow companies to maintain productivity with smaller teams.

Meta CEO Mark Zuckerberg said in January, "2026 is going to be the year that AI starts to dramatically change the way that we work." Since then, Meta has laid off hundreds, including 700 last week, even as the company plans to nearly double AI spending this year.

Financial technology firm Block CEO Jack Dorsey explained that intelligence tools allow smaller teams to achieve more. He warned that many companies could adopt similar strategies within a year.

Experts argue that this helps executives to temper the reaction of the public, as opposed to citing reasons of cost or pressure from shareholders.

Terrence Rohan, a tech investor, observed that currently, companies are utilising as much as 25% to 75% of AI-generated code, and this poses a significant danger to jobs in software development, computer engineering, and programming.

According to Bain Technology Practice Partner Anne Hoecker, “AI tools are good enough that you can do the same amount of work with fundamentally fewer people.”

Amazon, Meta, Google, and Microsoft are planning to invest $650bn (£485bn) in AI this year. Hoecker observed that this also helps companies to send a message to investors that they are being financially disciplined and that the executives are effectively managing the costs of AI, as well as investing in growth in technology.