California Logs 73,000 Tech Layoffs in 2025 as AI Boom Reshapes Hiring

1 articles · Updated · Yahoo Finance UK · Aug 26

More than 73,000 tech jobs have been cut in California in 2025, leading U.S. layoffs as workers struggle to find where their skills still command pay.
California's own AI-unemployment tracker has not found broad AI-driven layoffs statewide, though researchers see sharper pressure in the Bay Area, tech-heavy sectors and highly AI-exposed college-educated workers.
A 30% drop in job-finding rates for college-educated workers from January 2023 to January 2026 points to a wider structural shift, according to a San Francisco Fed economics letter.
Deloitte data helps explain that shift: only 1% of IT leaders reported no major operating-model changes, while 78% expect broad, targeted or transformational AI-agent integration within five years.