Layoffs are painful.
And yes, they’ve been tough—through 2023, into 2024, and there’s talk that 2025 might bring more.
But let’s clear something up:
AI is not the primary cause of tech layoffs.
The narrative that “AI is replacing everyone” is oversimplified and, frankly, misleading.
Here’s a more accurate look at what’s driving the wave of layoffs—and what’s really going on behind the scenes.
What’s Actually Driving Tech Layoffs?
Rising Interest Rates
Startups and growth-stage companies often rely on borrowed capital to scale.
But with interest rates climbing in many countries, those loans are now more expensive to repay.
The result?
Companies are cutting costs, and unfortunately, that often starts with headcount.
Overhiring During the Boom
2021–2022 was a hiring frenzy.
Fueled by cheap capital and rapid growth projections, companies scaled their teams fast—sometimes too fast.
Now? They’re right-sizing.
Cutting back on inflated teams and restructuring for sustainability.
Following the Crowd
This one’s real—though no one likes to admit it.
When big names announce layoffs, others often follow.
Even profitable companies sometimes cut jobs as a defensive move in uncertain times.
It’s fear-driven decision-making, not always data-driven.
So Where Does AI Fit In?
AI is changing the landscape—but it’s not replacing everyone.
It’s shifting roles, automating repetitive tasks, and yes, making some roles redundant.
But at the same time, it’s unlocking entirely new opportunities:
- New AI tools → need for trainers, testers, and ethical AI specialists
- More automation → more demand for systems designers and AI-integrated product teams
- AI disruption → new startups, industries, and creative roles we haven’t imagined yet
AI will lead to more job creation than job loss—if we’re prepared and adaptable.
Layoffs are driven by complex factors: economic shifts, business strategy corrections, and yes, evolving tech.
But AI isn’t the villain here—it’s a catalyst for transformation.
So don’t fear it. Learn it. Adapt. Grow.
The future belongs to the curious, the creative, and the resilient.
