Tech layoffs surge as AI investments soar. Are companies undermining their future?

The news: The US tech job market is shrinking. IT unemployment hit 5.0% in March—above the national average—as more professionals leave the industry entirely. 

  • Layoffs have outpaced hiring for three straight quarters, per Janco Associates and CompTIA jobs reports, and over 34,000 tech jobs disappeared in Q1 2025.
  • Many companies now opt to hire only senior talent—at lower pay—while newcomers struggle, per Janco CEO Victor Janulaitis, as cited by The Register. This mirrors the dot-com bust, in which novice tech workers exited the industry for good.