When we hear about layoffs by large corporations, our first instinct is often to blame artificial intelligence (AI) — especially when it comes to Big Tech companies.

In Q1 2026, 86 tech companies laid off over 80,000 employees. That's quite the jump from Q1 2025, when 103 tech companies laid off around 30,000 workers. It's also the highest number of layoffs in three years. (1)

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The idea that AI is to blame for these job losses didn't come from nowhere; CEOs are actively citing AI as the cause. In March, AI was claimed to be the leading reason for layoffs in the U.S., making up 25% of all job cuts. In 2026, it's supposedly the reason behind 13% of all layoffs so far. (2)

But this may not be entirely accurate. A different motivation could be behind job cuts, and perhaps AI is just the scapegoat.

Big Tech is engaging in massive layoffs — and blaming AI

On Thursday, April 23, Meta announced in an internal meeting that it planned to lay off 10% of its staff in May. Three sources on the call told Business Insider that the company said it was open to cutting even more jobs in the future. (3)

The same day, Microsoft sent workers an internal memo that offered voluntary buyouts. Around seven percent of its employees are eligible for the program.

Other tech companies that have cut jobs in 2026 include Eventbrite, Oracle, Quora, and Spotify, to name a few. (1)

A lot of companies. A lot of layoffs. And many of these organizations are blaming job cuts on AI.

"Almost every company that does layoffs is blaming AI, whether or not it really is about AI," Sam Altman, CEO of OpenAI, said at BlackRock's US Infrastructure Summit in March (4). Using AI as an excuse for laying off workers has been referred to as "AI washing." (5)

Some CEOs are at least somewhat honest.

"Since it's a thing now, I should note that the layoffs aren't related to AI," Tim Sweeney, CEO of Epic Games, said in a March note to his employees that announced the company would cut more than 1,000 jobs. (6)

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The true culprits behind tech layoffs

In a March interview with 20VC, businessman and venture capitalist Marc Andreessen said that, while many layoffs are blamed on AI, there are two other main causes. The first is that the federal funds rate was cut to 0% due to the COVID-19 pandemic, then the Fed quickly hiked the rate until it was over 5% in 2023. (7)