Tech giants are cutting jobs while pouring record sums into artificial intelligence, betting leaner workforces can help fund an escalating arms race for chips, data centers and computing power, The Wall Street Journal writes.
Meta plans to cut about 8,000 jobs, Microsoft is pursuing voluntary retirements and other firms, including Oracle, Snap and Block, have also reduced head counts. The push comes as Alphabet, Amazon, Meta and Microsoft are expected to spend a combined $674 billion on capital expenditures this year, more than double levels from two years ago.
Supporters frame the cuts as efficiency measures or corrections for past overhiring, but critics warn the strategy carries risks. Layoffs can damage morale, push talent out the door and fuel public backlash that paints AI as a job destroyer.
Meanwhile, growing debt loads and rising investor scrutiny raise questions about whether current spending levels are sustainable.
The result is a high-stakes balancing act: Spend aggressively to keep pace in AI, while avoiding financial strain, talent erosion and reputational blowback.
The Wall Street Journal has the full story.
Big-tech layoffs
