Tech companies are reporting record profits while laying off thousands, citing AI. Skepticism is growing, with experts suggesting AI is a cover for pandemic-era overhiring, as seen in recent cuts at Block and Uber.
LinkedIn co-founder Reid Hoffman is pushing back on the wave of tech layoffs being pinned on AI, warning that the label often hides older drivers like pandemic-era overhiring. In a post on X, Hoffman urged people not to ignore "other factors, including hiring trends 2020-2023." His comment lands amid major job cuts at Coinbase, Meta, Snap and Block.
Tech layoffs in 2026 have already surpassed 92,000 jobs across 98 companies, making it the worst year for tech employment since the post-pandemic bust. Meta, Amazon, Microsoft, Snap, Oracle, and Block are among the biggest names cutting staff, with AI infrastructure spending cited as the primary driver. But beneath the efficiency narrative lies a more complicated story—one of overhiring, debt, and a workforce reckoning that's far from over.
