Meta Among Tech Firms Cutting Jobs as Fed Foresees AI Productivity Gains
Chicago Federal Reserve Bank president Austan Goolsbee said he expects steady-state unemployment to remain below 15% over the next decade due to AI-driven productivity gains. Meta announced significant AI-related workforce reductions this year as US tech firms cut 52,000 jobs in Q1 2026, a 40% year-over-year increase in March.
1. Fed President’s AI Outlook
Chicago Federal Reserve Bank president Austan Goolsbee expressed confidence that AI-driven productivity gains will prevent unemployment from reaching 15% over the next decade, saying major technologies typically create net jobs despite short-term disruptions in job nature and tasks.
2. Tech Layoffs Impacting Meta
US tech firms cut over 52,000 jobs in Q1 2026, including 18,720 in March—a 40% year-over-year increase—and Meta implemented significant AI-related workforce reductions as part of a broader industry shift toward automation and cost optimization.