Big Tech is spending as if the future depends on AI. At the same time, thousands of workers are being pushed out the door.
The global technology sector recorded its worst month for job cuts in at least two years, with 45,800 layoffs announced in March 2026, according to data from Layoffs.fyi. That brought the total for the first quarter of the year to 92,272 workers across 98 different firms.
The sheer scale of March’s numbers was driven largely by one company: Oracle. The enterprise software giant cut approximately 30,000 jobs globally, including around 12,000 in India alone, describing the move as part of a “broader organisational change.” Other firms followed suit.
Meta is planning to cut about 8,000 roles, while Microsoft has introduced a voluntary retirement program affecting nearly 7% of its US workforce, moves that could lead to deeper reductions if targets are not met.
Elsewhere, fintech firm Block has slashed roughly 40% of its workforce, impacting more than 4,000 employees. Atlassian cut 1,600 jobs, and Epic Games reduced its staff by 1,000 roles, or 20%, citing lower engagement with Fortnite. Snap has also announced fresh cuts in recent weeks.
‘We’re not in trouble,’ but the cuts keep coming
If there’s one thing tech executives agree on right now, it’s the messaging: these aren’t distress signals, they’re visionary pivots.
Block CEO Jack Dorsey said in his announcement, “We’re not making this decision because we’re in trouble.” But as the Wall Street Journal noted in its analysis, the reality underneath those confident statements is more complicated.
Companies are locked in what amounts to a high-stakes game of chicken, each one trying to outspend rivals on AI chips and data centres, betting that whoever builds the biggest infrastructure wins the next era of tech dominance. To fund that race, payroll is being raided.
Alphabet, Meta, Amazon, and Microsoft are collectively projected to spend $674 billion on capital expenditures in 2026 alone, more than double what they spent just two years ago, when AI investment was already considered sky-high, according to the Wall Street Journal. Amazon is expected to actually burn cash this year. Meta’s capital spending is projected to exceed half of its entire annual revenue.
While AI is a major factor, it’s not the only one. Analysts say some companies are also adjusting after years of aggressive hiring during the pandemic boom. For example, data from S&P Global Market Intelligence shows that Oracle generates significantly lower revenue per employee than peers such as Microsoft, suggesting room for efficiency improvements.
In other cases, companies like Snap expanded headcount rapidly during periods of growth without achieving consistent profitability, making cuts more likely.
The looming backlash
There is also the human cost that doesn’t show up on a balance sheet. The narrative that AI is a “job killer” is gaining steam, and it’s creating a headache for tech giants.
Beyond internal morale issues, local communities are starting to fight back against the massive, power-hungry data centers required to run AI. If the public begins to view AI as an enemy to the middle class rather than a helpful tool, the AI future these companies are betting on might face more than just financial hurdles.
Also read: Companies are also cutting compensation to fund AI investments, with one survey finding pay, bonuses, and benefits on the table as the AI race intensifies.