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Is AI causing tech worker layoffs? That's what CEOs suggest, but the reality is complicated

SAN FRANCISCO BAY AREA, BOSTON, AND SEATTLE, JUL 30 – Tech giants like Microsoft and Google cut thousands of jobs while boosting AI investments, with technical vacancies falling 36% since early 2020, reports show.

  • Microsoft revealed that it has reduced its workforce by approximately 15,000 employees this year as it prepares to report its earnings for the fourth quarter on Wednesday.
  • These layoffs and tech sector job declines follow a broader cooling of the job market and predate the current AI era, complicating direct attribution to AI.
  • Other tech companies like Tata Consultancy Services, Autodesk, and CrowdStrike also cut jobs citing resource shifts to accelerate AI investments and organizational realignment.
  • Indeed reports tech job postings in July fell 36% from early 2020 levels, with entry-level roles hit hardest while AI specialists remain in better demand despite still not recovering fully.
  • These trends suggest companies balance maintaining headcount with expanding AI capabilities, making AI spending a more common factor than outright job replacement so far.
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Is AI causing tech worker layoffs? That's what CEOs suggest, but the reality is complicated

A new report from Indeed reveals that tech job postings in July were down 36% from early 2020 levels. While AI is a factor, it's not the sole reason for the decline.

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King5 News broke the news in Seattle, United States on Wednesday, July 30, 2025.
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