Big Tech's New Layoffs Phase is Underway

We’re in a tech layoff era again—although a more accurate term may be an “employee replacement” phase. Meta Platforms told staff on Thursday it plans to lay off 10% of its staff, or about 8,000 people, next month. (The next few weeks won’t be fun at Meta!) The latest layoffs follow Meta’s cuts of about 2,000 people earlier this year and a spate of such cuts elsewhere at Snap, Amazon and Microsoft.   

Most companies herald these moves as a sign of cost discipline—something Wall Street wants to hear—but if history is any guide, they’re not necessarily cutting their overall numbers much. This time might be different, thanks to AI, but in the past big layoffs have been an exercise in switching out people for more specialized talent—who are quite possibly more expensive than those they’re letting go.