At least 23,000 jobs have been lost in the technology sector so far this year as companies increasingly adopt artificial intelligence (AI), with experts warning that further layoffs could follow.
Australian software company Atlassian recently announced plans to cut 1,600 jobs—around 10% of its global workforce—as part of efforts to restructure its operations around greater use of AI. Co-founder Mike Cannon-Brookes acknowledged that AI is changing the types of skills companies require and reducing the need for certain roles.
Several major technology firms have also reduced their workforces this year, including Amazon, WiseTech, Meta, Block, Inc., Salesforce, eBay and Pinterest. While not all companies directly attributed the layoffs to AI, many indicated that new technologies are transforming the way businesses operate.
Block co-founder Jack Dorsey said emerging intelligence tools and smaller, more streamlined teams are reshaping how companies are built and managed. Meanwhile, WiseTech chief executive Zubin Appoo said AI is significantly boosting productivity by combining advanced technology with the company’s extensive logistics data and network advantages.
Experts say the layoffs reflect a broader structural shift in the global workforce. The World Economic Forum recently stated that an “AI-driven workforce” is already emerging. According to its latest Future of Jobs report, around 92 million jobs could be eliminated worldwide by 2030 due to AI and other technological advances, while about 170 million new roles may be created.
The report also noted that demand is expected to grow rapidly for technology-related skills such as artificial intelligence, big data, cybersecurity and digital literacy.
However, some analysts say the situation is more complex than simply AI replacing workers. UNSW AI Institute director Sue Keay said many traditional technology companies are under pressure to compete with newer AI-focused firms that can operate with fewer employees.
She added that until companies demonstrate how they can generate new value from artificial intelligence, the industry may continue to face job cuts. Meanwhile, University of Sydney digital innovation and ethics lecturer Raffaele Ciriello said the tech sector often relies on optimistic expectations about emerging technologies, noting that similar hype cycles have occurred previously with innovations such as blockchain.
