Tech Layoffs Continue. Why Laid-Off Workers Should Consider Entrepreneurship

Tech layoffs are continuing at large scale in the U.S., especially in California, even as AI investment booms. The article argues that while AI isn’t the only driver, structural changes and the push for leaner teams—accelerated by widespread AI integration—are affecting job prospects for highly educated tech workers. It cites California’s AI-Unemployment tracker, which its policy lab says doesn’t show “large-scale” AI-linked layoffs statewide, but does find patterns in Bay Area regions, in tech-heavy sectors, and among college-educated, highly AI-exposed workers. A San Francisco Fed Economics letter dated Aug. 3 found prime-aged workers’ job-finding rates dropped about 30% for college-educated people from January 2023 to January 2026. The piece urges displaced workers to consider entrepreneurship and leverage transferable skills.