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The latest tech layoffs have all the hallmarks of AI washing

Looking closer at the latest Block and Atlassian layoffs.
March 26, 2026

Estimated reading time: 5 minutes

Key takeaways:

  • The era of AI-driven layoffs is here, but are they covering up deeper business issues?
  • AI typically augments tech roles rather than replacing them; misaligned executive rhetoric creates deep distrust and legal risks regarding transparency.
  • Experts predict AI-driven cuts could be reversed as firms realize they prematurely replaced essential human talent with unproven automated workflows.

A handful of tech companies have made sweeping layoffs to reorganize for the AI era. But are there other factors at play?

When Block CEO Jack Dorsey laid off 4,000 workers at the end of February, he insisted that financial woes had nothing to do with the decision.

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