The AI layoff wave is becoming a powder keg

TechCrunch · 6 min read · studios

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Tech layoffs hit 40,000 in May, the highest single month in two years, with AI cited as the reason for the third consecutive month. However, industry figures including Marc Andreessen argue AI is a convenient cover story for mismanagement and pandemic-era overhiring, with most large companies overstaffed by 25–50%.