Why Layoffs Are Becoming a Strategy, Not a Crisis

The Strategic Shift: Why Layoffs Are Becoming a Planned Move in Tech

For years, layoffs signaled trouble. When companies cut jobs, it usually meant shrinking demand, falling revenue, or an economic slowdown. But the latest wave of global tech layoffs tells a different story. These job cuts are not driven by a crisis. They are planned decisions tied to how work itself is changing.

In late 2025 alone, around 1,800 tech workers in Israel lost their jobs in a single month. Globally, the pattern is even clearer. Amazon cut roughly 14,000 roles, Microsoft reduced its workforce by about 7,000, Autodesk let go of 1,350 employees, and Salesforce eliminated several thousand positions, as reported by CTech. These companies were not collapsing. Most were restructuring for a future shaped by artificial intelligence.

Layoffs Are No Longer About Survival

Earlier waves of layoffs followed recessions or financial shocks. This time, demand did not vanish overnight. Customers did not disappear. Instead, companies changed how work gets done.

AI systems now handle tasks that once needed full teams. Customer support, data review, testing, internal reporting, and basic research are increasingly automated. When leaders see that software can replace parts of the workforce, they redesign teams accordingly. That is why these layoffs feel different. They are not reactions. They are advanced moves.

Algorithms Are Replacing Entry-Level Work First

The roles disappearing fastest share one trait: they sit at the entry level. Junior analysts, support agents, sales assistants, QA testers, and non-core product roles are being phased out. This is not accidental. These roles involve repeat tasks that AI can already manage. 

Companies no longer need large junior teams to process tickets, review data, or handle routine sales queries. For young workers, this creates a serious gap. Entry roles were once the doorway to experience. Now that the doorway is narrowing, leaving many skilled graduates without a starting point.

Workers Know What Is Coming

Employee fear is not based on guesswork. Surveys show deep concern about long-term job security. More than half of US workers worry about AI’s impact on their careers, and nearly one-third believe it will reduce their future options. Another major survey found that seven out of ten Americans believe AI will permanently replace their jobs. This explains why layoffs today feel more personal. Workers are not just losing jobs. They are losing confidence in the system itself.

Two Job Markets Are Forming

Global employment forecasts show a split reality. By 2030, around 170 million new roles may be created, while about 92 million existing jobs could disappear. On paper, the math looks positive. In practice, the people losing jobs are not the same ones filling new roles.

New jobs often need advanced skills, AI literacy, or cross-functional thinking. Many laid-off workers do not have the time or support to retrain fast enough. This creates two job markets, one growing, one fading, with little overlap.

Why Investors Applaud Layoffs

Markets play a major role in this shift. Layoff announcements often push stock prices up. Cutting jobs is framed as discipline, focus, and efficiency. Leaders are praised for ‘future-proofing’ operations. Over time, this has changed behavior. Layoffs are no longer a last step. They are used to send signals to investors. This rewards short-term gains while ignoring long-term damage to trust, morale, and knowledge inside teams.

Entrepreneurship Is Rising Out of Fear, Not Optimism

One surprising outcome of this trend is a rise in new business creation. In the US, business applications increased by about 124,000 in the first eight months of the year compared to last year. 

Data from business formation platforms shows that more than one in four founders cite AI-driven job risk as the reason they went independent. This is not a startup boom driven by confidence. It is a safety move. Many workers no longer trust stable employment and are building income sources they control.

What This Means for Young Professionals

Parents and students are asking hard questions. Fields once seen as safe no longer offer clear entry paths. Even tech careers now come with uncertainty.

Three paths appear more stable today:

• Physical, on-site roles like electrical work, construction, and maintenance, which cannot be automated easily
• AI implementation roles inside banks, insurers, and traditional industries that struggle to modernize
• Entrepreneurship, not always tech-based, is supported by AI tools that lower setup costs

None of these paths is guaranteed. But they reflect how work is shifting.

Strategy Has Replaced Responsibility

Layoffs turning into a strategy marks a dangerous change in leadership thinking. AI should reshape jobs, not erase people. Cutting headcount may boost short-term numbers, but it weakens trust, creativity, and long-term resilience. Strong companies are built by adapting roles, not removing them. If layoffs remain the default tool for transformation, businesses may find themselves efficient but hollow.