Jakarta, CNBC Indonesia - The wave of layoffs in the global\ntechnology industry is heating up again after Meta and Microsoft\nannounced potential cuts of more than 20,000 jobs on Thursday. This\ndrastic step has triggered deep concerns among economic experts that the\nlabour crisis due to artificial intelligence (AI) is no longer a future\nthreat, but a bitter reality today.<\/p>\n
This phenomenon is an irony because these giant companies are\ncollectively pouring hundreds of billions of US dollars into building AI\ninfrastructure. Citing CNBC International, this move is part of a\nmassive efficiency effort where companies are trying to replace human\nroles with technology while making adjustments after over-hiring during\nthe pandemic.<\/p>\n
Permanent Structural Shift<\/p>\n
Experts see this trend not as a mere market correction, but as a\nfundamental transformation in work organisation across various\nindustries. Anthony Tuggle, an executive coach and leadership expert who\npreviously worked in the AI world, shared his views on the\nsituation.<\/p>\n
\u201cThis represents a fundamental structural shift rather than a\ntemporary market correction. We are witnessing the beginning of a\npermanent transformation in how work is organised and executed across\nindustries,\u201d Tuggle said in his analysis, quoted on Monday\n(27\/4\/2026).<\/p>\n
Based on data from Layoffs.fyi, more than 92,000 tech workers have\nbeen affected by layoffs throughout 2026 up to this week. This figure\nadds to the cumulative total of workers who have lost their jobs,\nreaching nearly 900,000 since 2020. Anxiety over job security continues\nto rise since the emergence of ChatGPT and other AI tools capable of\nefficiently handling entire business divisions.<\/p>\n
Details of Meta and Microsoft Cuts<\/p>\n
Meta specifically signalled efficiency in an internal memo sent to\nits employees. The company founded by Mark Zuckerberg plans to cut 10%\nof its workforce, equivalent to 8,000 positions, starting on 20 May. In\naddition, Meta is cancelling plans to fill 6,000 vacant positions.<\/p>\n
\u201cThis is all part of our ongoing efforts to run the company more\nefficiently and enable us to keep pace with other investments we are\nmaking,\u201d Meta wrote in the memo.<\/p>\n
At almost the same time, Microsoft confirmed an unprecedented move in\nits 51-year history by offering a voluntary redundancy programme\n(voluntary buyout). Around 7% of employees in the United States, or\nabout 8,750 people, are eligible for this programme to reduce\noperational costs.<\/p>\n
Rajat Bhageria, CEO of physical AI startup Chef Robotics, stated that\nalthough AI is likely to create new jobs in the future, the form of\nthose jobs remains a big question mark.<\/p>\n
\u201cWe are just beginning to understand how much of our daily work can\nbe handled by AI across different types of jobs,\u201d Bhageria revealed.<\/p>\n
Financial Efficiency and Massive AI Funds<\/p>\n
These staff reduction moves are predicted to have a significant\nimpact on company cash flow. Analysts from TD Cowen in their notes\nmentioned that eliminating 20,000 to 30,000 jobs could generate\nadditional free cash flow of US$8 billion to US$10 billion\n(approximately Rp138 trillion to Rp172.5 trillion) for companies like\nOracle.<\/p>\n
Despite cutting thousands of people, tech companies\u2019 spending remains\nunchecked. Alphabet, Microsoft, Meta, and Amazon are estimated to spend\na combined nearly US$700 billion (approximately Rp12,077 trillion) this\nyear just to build AI infrastructure.<\/p>\n
On the other hand, Glassdoor\u2019s Chief Economist, Daniel Zhao, noted\nthat fewer people are daring to resign voluntarily due to fears of an\nunstable job market. This dynamic is making companies take more\naggressive steps.<\/p>\n
\u201cBecause natural resignations are not happening much, companies are\nbecoming more aggressive in pushing people out the door. Whether that\nmeans explicit layoffs or raising performance review standards, there\nare various actions taken by employers to cut labour costs,\u201d Zhao\nexplained.<\/p>\n
This AI-based efficiency is also felt by Snap Inc., which cut 16% of\nits staff, or around 1,000 people. Snap CEO Evan Spiegel openly stated\nthat AI-driven efficiency was the main reason in his letter to staff.\nThe same sentiment was expressed by Salesforce CEO Marc Benioff, who cut\n4,000 customer support roles because he felt his company needed fewer\nstaff in operations.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/latest-wave-of-layoffs-hits-the-giants-too-1777265492", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }