Layoffs across the tech sector are accelerating, and many experts believe that this is more than just a short-term cycle. In fact, Meta Platforms (META), Microsoft (MSFT), and Amazon (AMZN) have all announced or signaled major job cuts. Because of this, analysts say that companies are trying to become more efficient by replacing certain roles with AI, while also correcting for the overhiring during the pandemic. In fact, leadership experts argue that this is a “structural shift,” meaning the way work is organized is permanently changing.
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New trading tool for AMZN bullsAnd the data is starting to support that view. More than 92,000 tech workers have already been laid off in 2026, bringing the total close to 900,000 since 2020. Analysts point out that AI is already capable of handling tasks that once required full teams, which is increasing job pressure right now, not years from now. And while some economists believe that new jobs will eventually be created, others note that there is a growing gap between job losses and hiring, especially for entry-level roles.
Analysts also highlighted a clear trend in startups, where much smaller teams are now generating large amounts of revenue. As a result, many workers feel stuck, as fewer people are quitting jobs, and companies are becoming more aggressive with layoffs and performance cuts in order to control costs. Meanwhile, the largest tech companies are expected to spend nearly $700 billion this year on AI infrastructure.
Which Tech Stock Is the Better Buy?
Turning to Wall Street, out of the three tech stocks mentioned above, analysts think that MSFT stock has the most room to run. In fact, MSFT’s price target of $573.99 per share implies 36.4% upside potential.
