AI
Worldwide spending on AI could reach US $ 2.5tn in 2026, according to Gartner. To fund this, major technology firms are seemingly cutting their workforces.
Gone are the days of cutting staff for post-pandemic efficiency. Now, the justification has shifted from over-hiring to a direct tradeoff between human payroll and investment in machine intelligence.
Meta CEO Mark Zuckerberg said in January:“ I think that 2026 is going to be the year that AI starts to dramatically change the way that we work.”
This is a sentiment backed by hundreds of recent job cuts even as Meta doubles its AI infrastructure spending. Similarly, Jack Dorsey of fintech firm Block recently announced plans to shed nearly half his workforce, bluntly stating that“ intelligence tools have changed what it means to build and run a company”.
The financial pressure is immense. According to investment management firm Bridgewater Associates, the big four – Amazon, Google, Meta and Microsoft – are projected to spend US $ 650bn on AI this year.
To appease investors who are wary of these huge spending commitments, firms are aggressively slashing payroll.
While laying off staff provides only a fraction of the capital required for
96 May 2026