Why one of the nation's most prosperous industries is shedding jobs

SAN FRANCISCO - After more than a decade in tech, Casey Engler thought he was prepared for another round of industry layoffs. But when Microsoft cut his job in July, the shock still hit hard - and the long odds of finding new work in a year marked by job losses quickly set in.

“The first thing that went through my mind was this intense feeling of being freaked out and sad,” said the 44-year-old Seattle resident, who has since been chatting with Big Tech recruiters and brushing up on his programming skills. “It was like, ‘What are you going to do now that you’re in the same boat as everyone else?’”

Silicon Valley is in the midst of an unprecedented artificial intelligence boom, pouring billions of dollars into developing the technology. Revenue is surging, with Big Tech companies beating Wall Street’s expectations in their latest quarter. They’ve announced plans to invest up to $375 billion in AI infrastructure this year, as they expand the footprint of data centers that power their software.

But despite soaring revenue and record AI investments, companies continue to slash jobs. Technology firms have announced more than 141,000 job cuts so far this year, according to outplacement firm Challenger, Gray & Christmas, a 17 percent increase from the same period last year. In the last two years, the tech workforce has shrunk nationwide by about 3 percent a year, with California posting a much steeper 19 percent drop, according to data from the U.S. Bureau of Labor Statistics.

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