AI-Heavy Firms Cut Jobs but Also Grew Headcount 10%, Study Finds

Major tech companies including Block, Oracle, and Meta collectively cut tens of thousands of jobs in 2026 while simultaneously increasing AI spending, contributing to over 121,000 tech layoffs tracked so far this year. However, a working paper analysing data from more than 21,000 US businesses found that heavy AI spenders actually grew their overall headcount by roughly 10% over two years, with entry-level hiring also rising. OpenAI's GDPval benchmark, released in September 2025, revealed that frontier AI models now compete directly with experienced professionals across 1,320 specialised tasks in 44 occupations. Researchers and analysts suggest the layoffs are concentrated in roles focused on routine task execution, while demand grows for workers who bring judgment and decision-making ownership. The emerging pattern indicates that AI is reshaping labour markets rather than simply shrinking them, with job security increasingly tied to the level at which a worker's value sits above what AI can automate.