Layoff fears may be particularly prevalent in the tech space. Tech firms ramped up hiring during the pandemic when demand for their products surged. Forced remote work changed the landscape and paved the way to more jobs.

Big Tech has been spending heavily on AI as they see the new technology as a major growth engine, while slashing costs elsewhere to safeguard profit margins.

Microsoft, based in Redmond, Washington, said the layoffs will be across all levels and geographies but the cuts will focus on reducing the number of managers.