Big Tech Job Cuts Signal Cooling White-Collar Labor Market

Layoffs and hiring slowdowns among major technology firms are raising concerns about the outlook for white-collar workers, according to a report by Yahoo News.

Despite strong stock market performance and continued advances in artificial intelligence, job opportunities at major tech firms are becoming more limited. (Photo: Amazon)

For the first time since 2016, companies in the S&P 500 employed fewer workers at the end of 2025 than the previous year, according to Bank of America strategist Michael Hartnett.

The U.S. Federal Reserve’s Beige Book also indicated that companies are increasingly relying on temporary and contract workers to reduce costs.

Meanwhile, Meta and Microsoft announced workforce reductions. Meta said it would cut about 8,000 jobs, roughly 10% of its workforce, and eliminate 6,000 open roles.

Microsoft offered buyouts to about 7% of staff below senior ranks, targeting employees whose age and years of service total more than 70.

Despite strong stock market performance and continued advances in artificial intelligence, job opportunities at major tech firms are becoming more limited.