The AI layoff wave is becoming a powder keg

The AI layoff wave is turning into a powder keg in tech, even as firms report record profits. TrueUp estimates 363 tech layoffs this year have affected about 150,000 workers, equal to roughly 974 people per day and a pace 44% faster than last year. Layoffs peaked last month at nearly 40,000, with Challenger, Grey & Christmas noting AI was the most-cited reason for layoffs across industries for the third consecutive month. Critics question whether AI is the real driver or a convenient excuse. Notable cases include Block’s earlier significant cuts and Uber’s HR-recruiting reductions, events that fueled debate about overhiring during the pandemic and AI spend.