White-Collar Workers Have Been Hit Hard by Layoffs – And Things May Get Even Worse

White-collar workers in the U.S. have been hit especially hard by layoffs so far this year, and the trend appears to be getting worse. While 2025 already saw a large number of job cuts, the first few months of this year have only added more pressure, as costs rise and companies increasingly restructure around artificial intelligence. For example, data from Challenger, Gray & Christmas shows that March alone had over 60,000 job cuts, up sharply from February. In addition, more than 70,000 layoffs have already taken place in the tech sector this year, according to Layoffs.fyi.

To make matters worse, many companies are still planning more layoffs. A survey by Resume.org found that 48% of companies expect to cut jobs in 2026, with some planning layoffs early in the year and others later on. At the same time, WARN Tracker data show that over 100 companies are preparing to reduce staffing, including firms like chipmaker Qualcomm (QCOM), banking giants JPMorgan Chase (JPM) and Bank of America (BAC), as well as drug manufacturer Gilead Sciences (GILD).

In many cases, companies point to AI as the main reason for job cuts by saying that they are shifting resources to benefit from the new technology. However, some critics argue that AI is being used as an excuse and note that many layoffs are actually tied to overhiring during the pandemic. According to a Yale study, more than 700,000 tech jobs have been cut since 2022 for this reason. Therefore, some analysts believe companies may be using AI as a more positive explanation for layoffs instead of admitting to slower growth or past hiring mistakes.

Which Stock Is the Better Buy?

Turning to Wall Street, out of the four stocks mentioned above, analysts think that GILD stock has the most room to run. In fact, GILD’s price target of $159.47 per share implies 15.8% upside potential.