Tech Is Hiring. Tech Is Also Laying Off. How?

You see headlines about AI replacing developers. Then you also see job postings for software engineers. Both can't be true at the same time. Or maybe they are. That's the weird spot the tech job market is in right now.

The Layoffs

Oracle cut thousands of jobs this week. Meta let go of hundreds more. Block laid off around 4,000 people, and others have been doing the same. The steady stream of tech layoffs hasn’t really stopped.

Why? Two Big Reasons

First, companies need money for AI. Oracle spent nearly $40 billion on AI infrastructure but didn't generate enough cash to cover it, and layoffs are one of the fastest ways to free up money and show investors they're serious about controlling costs while spending billions on new tech.

Second, AI really is replacing some jobs. Block's CEO openly said AI tools are “fundamentally changing how businesses are built.” Atlassian cut 10% of its workforce specifically to “self-fund further investment in AI.” Both things are happening at the same time. Money moving. Roles disappearing.

The Hiring

But the twist is while some roles are disappearing, demand for people who can actually build, deploy, and manage AI systems has exploded. AI-related job postings have surged dramatically since 2021, and companies are still desperate for skilled talent.

The New Geography

According to World Bank reports, one in five AI jobs globally is now in middle-income countries. Brazil, India, Indonesia, Vietnam. South Africa, Kenya, and Nigeria are becoming big players too. Strong English skills and time zones that line up with Europe make these markets very attractive for AI work.

So What's Actually Happening?

Companies are laying people off to free up billions for AI data centers. At the same time, AI tools are automating or reshaping parts of software work. Those two things are happening simultaneously.