In Q1, over 45,000 tech jobs were laid off globally, with AI often cited as the reason. However, Block, after laying off 40% of its workforce, recalled employees—because key positions were vacant.
The truth is: AI is a shield. Companies would rather say they are "embracing AI" than admit to "overhiring" or "bad economy."
The real culprit: the monetary easing during the pandemic created a job bubble, and now with rising interest rates and slowing consumption, the bubble is bursting, and layoffs are inevitable.
AI is a catalyst, not the root cause. The real battle royale has never been initiated by AI.
