In recent weeks, it seems that every other headline in the tech industry has been about layoffs. Wix is reportedly cutting around 1,000 employees, Meta continues its efficiency measures while redirecting more and more resources toward AI, and additional technology companies worldwide are reducing headcount and reshaping their organizational structures. On social media, many were quick to declare: AI is replacing people.
But those who are inside the industry understand that the story is more complex.
It is very easy to blame artificial intelligence for everything currently happening in the market, but the layoffs we are seeing are not driven solely by new technology. They are the result of several processes taking place simultaneously: higher interest rates, pressure from investors to demonstrate profitability, a shift from inflated organizations to leaner and more efficient structures, and, of course, a deep change in the way companies operate in an era in which AI is becoming an integral part of daily work.
During the years of cheap capital, companies hired at an enormous pace. Growth was almost everything. Today, the reality has changed. Management teams are measured differently. They are required to do more with less, move faster, and demonstrate real efficiency. In this reality, AI does not always replace employees directly, but it does enable companies to carry out efficiency measures and organizational changes more quickly.
This may be the most important point: not every company that lays off employees because of AI is actually replacing people with AI. In many cases, AI has simply become a catalyst for changes that companies already wanted to make.
At the same time, it would also be inaccurate to paint an entirely pessimistic picture. Alongside the wave of layoffs, we are also seeing a shift in demand. Companies are still hiring, but they are looking for something different: more employees who know how to work alongside AI, understand processes, adapt quickly, and create value in a work environment that is changing at an unprecedented pace. Demand is rising for roles in Data, cybersecurity, AI products, automation and integrations, while more traditional roles are also changing before our eyes.
What is especially interesting is that this shift is also affecting candidates. In the past, people mainly looked for a “stable company.” Today, even the largest tech companies in the world are no longer perceived as immune. More and more employees understand that the question is no longer only where they work, but how well they know how to change together with the market. And honestly, sometimes it is also a matter of timing and luck. Even excellent employees can find themselves affected by broad organizational decisions that have no direct connection to their professional abilities.
I believe that as people continue to learn, explore, develop and understand the unique added value they bring to an organization alongside AI, their place will not disappear. It will become sharper and more defined. At the end of the day, technology is a tool. People are the ones who give it meaning.
The biggest mistake right now is to think that the tech industry is collapsing or that jobs are simply disappearing. In practice, the market is not weakening. It is changing shape.
The author is the recruitment team lead at SQlink