Wave of Layoffs in Tech Giants Signals New Pressure on US Economy

A wave of layoffs in major technology companies (big tech) is considered not just ordinary efficiency measures, but a warning signal for the economic condition, particularly for office workers. If being the number one pick in the NFL draft is a promising dream, the reality now facing many professionals is different. Career prospects in large companies, especially in the technology sector, are increasingly challenging. For the first time since 2016, companies in the S&P 500 index recorded employing fewer employees at the end of 2025 compared to the previous year. This data was provided by Bank of America strategist Michael Hartnett. Pressure in the labour market continues to be felt. The Federal Reserve’s (The Fed) Beige Book report shows that companies are beginning to realise they can reduce costs by recruiting temporary or contract workers, without long-term commitments. This strategy serves as an alternative to maintain flexibility while reducing the burden of permanent labour costs. Meta has announced it will lay off around 8,000 employees, or about 10 percent of its total workforce, and eliminate 6,000 previously vacant positions. Meanwhile, Microsoft is offering a buyout programme to around 7 percent of employees below top management level. This programme targets employees with a specific combination of age and tenure, namely if the total exceeds 70. Whether through subtle approaches like buyouts or direct cuts, the steps taken by these two companies reflect a strategic shift amid the AI-based industry transformation. However, on the other hand, job opportunities in the large companies at the centre of this revolution are increasingly narrowing. This condition reinforces that economic growth and technological advancement do not always go hand in hand with increased labour absorption.