Tech firms blame AI for mass layoffs in 2026 despite record investments.

Major tech firms are blaming artificial intelligence for mass layoffs in 2026, replacing older excuses like inefficiency. Executives claim AI tools allow smaller teams to produce more output, justifying cuts even as companies invest over $650 billion in the technology. While skeptics suspect cost-cutting is the real motive, experts acknowledge AI is boosting productivity and reducing the need for some software roles.