Meta, Coinbase, and Block each laid off at least 10% of their employees, citing artificial intelligence despite underlying business challenges. Meta retreated from its $80 billion metaverse bet, Coinbase faced cryptocurrency market volatility, and Block acknowledged pandemic-era overexpansion that tripled its workforce.

Tech layoffs have accelerated dramatically this year, with over 150 companies cutting at least 115,000 jobs. Analysts suggest AI serves as a convenient smoke screen for companies seeking to boost profits or cover operational missteps. Many firms reassign rather than eliminate workers, funneling them into AI initiatives while claiming efficiency gains.

The AI-driven job cuts have created an isolated recession for new tech graduates. Meta closed 6,000 planned hires, Snap eliminated 300 open positions, and AI startups hire fewer people overall. For computer science graduates entering the workforce, the job market has become significantly more challenging.