US Tech Groups Cut 140,000 Jobs as AI Spending Surges

The generative AI race is reshaping how Silicon Valley allocates capital and labor. Amazon, Microsoft, Alphabet and Meta are directing unprecedented sums toward data centers, chips and servers while companies automate routine work, flatten management and shift resources into AI-focused teams. The divergence matters because technology has long supplied some of the highest-paid US white-collar jobs, raising questions over whether AI-led investment can generate enough new roles to offset the positions being eliminated.

US technology companies have cut about 140,000 jobs so far in 2026, the Financial Times reported on July 24. Amazon, Microsoft, Alphabet and Meta are expected to spend roughly $600 billion on AI infrastructure this year, while Oracle reduced its workforce by 21,000 over the past 12 months. The cuts have remained concentrated in technology and other white-collar roles: US Labor Department unemployment-benefit claims have not risen in step with layoff announcements, leaving the broader jobs market comparatively stable.