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Edition 2026-07-20

TECHNOLOGY

Tech Workers Report Growing Insecurity Amid AI-Driven Layoffs

Susan Smith, a former mid‑level executive at Meta who earned more than $500,000, was laid off in May after four rounds of cuts.

By washingtonpost · 96d ago · Source: washingtonpost

Full article

Susan Smith, a former mid‑level executive at Meta who earned more than $500,000, was laid off in May after four rounds of cuts. She now searches for work in a field with few openings. Her experience reflects a broader shift in Silicon Valley as artificial intelligence drives automation and workforce reductions. Companies such as Meta, Microsoft, Oracle and Amazon have eliminated more than 800,000 jobs since 2022, according to Layoffs.fyi. Tech leaders have asked employees to treat AI systems as colleagues and to accelerate automation of their own roles. As a result, many skilled workers report that their expertise is losing relevance. Anil Dash, a technology entrepreneur, described AI workers as “guinea pigs” for new automation practices, while Oliver Raskin, founder of Signalcraft Insights, noted a change in sentiment among formerly secure upper‑middle‑class professionals. Labor historian Joseph McCartin of Georgetown University compared the current AI transition to the automation of the auto industry, which took decades to affect manufacturing workers. The shift has raised concerns about job security and income distribution. The top 1 percent of U.S. households hold about one‑third of personal wealth, while the bottom half holds less than 3 percent, according to Federal Reserve data. Tech stocks have accounted for nearly half of the S&P 500’s gains since 2010, driven largely by a few dominant firms. While valuations of AI companies such as OpenAI and Anthropic remain high, the financial benefits are concentrated among a smaller group of founders and investors. Some analysts say the current wave of layoffs reflects an over‑hire period followed by a move toward higher productivity with fewer workers. Burning Glass Institute economist Gad Levanon observed that hours worked in the information sector have declined since 2022 while output has risen about 8 percent annually, indicating that more output is generated with similar or reduced headcount. Psychologist Anneke Buffone, who left Meta in December, said many employees fear that losing a job could mean difficulty finding another position. She also described pressure from managers to continue using unreliable AI tools. The situation has led some workers, like Smith, to seek new purposes outside the industry, volunteering at her church to help revamp its technology use. Smith said she is uncertain whether she will return to Silicon Valley, noting that “the emperor has no clothes.”

Source transparency

Publisher
washingtonpost
Reliability
high
Published
7/20/2026, 10:00:19 AM
Retrieved
7/20/2026, 10:00:19 AM
Relevance
80%
Confidence
85%
Read original at washingtonpost

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