As artificial intelligence transforms hiring and entry-level work, Latino professionals and Gen Z workers face growing uncertainty across California’s technology economy.
Every day, every hour, and even every minute, the labor market in technology companies continues to change. What is most troubling is that hiring levels are not keeping pace with these rapid shifts, leaving thousands of workers in limbo.
Since 2022, more than 815,500 tech workers have been laid off, according to Layoffs.fyi, a website that tracks job cuts. The wave of layoffs accelerated in 2023, when companies that expanded aggressively during the COVID-19 pandemic began scaling back. From January through April of this year, U.S. tech employers announced 85,411 job cuts, up 33% from the same period last year, according to Challenger, Gray & Christmas, a global outplacement and executive coaching firm.
In 2026 alone, 110,223 tech employees have already been laid off across 144 technology companies.
The Public Policy Institute of California estimates that information sector jobs, including positions in both technology and the heavily affected Hollywood entertainment industry, declined by 17% between mid-2022 and February of this year. The San Francisco Bay Area has been hit especially hard. According to a recent report, employment growth in the region fell to just 0.4%, compared with 7.5% growth during a similar period before the pandemic disrupted the U.S. economy.
Latinos in the technology industry have faced disproportionate consequences during this period of downsizing. Although Latinos represent nearly 19% of the U.S. labor force, they account for only about 6% to 11% of technology roles. Because many Latino professionals work in business operations, recruiting, and administrative functions, they are often among the first employees affected during corporate restructuring.
Generation Z is now confronting a major dilemma because the rules of hiring have changed. Traditional skills are no longer enough. Salary and job responsibilities are no longer the only priorities. The key word today is adaptability. Young professionals are under pressure to move quickly from one project to another and continuously align their skills with changing market demands.
Artificial intelligence has intensified these concerns.
Historically, entry-level jobs functioned as apprenticeships where younger workers developed professional judgment by handling foundational tasks such as research, scheduling, analysis, reporting, and operational support. Many of these responsibilities are now being automated or augmented by AI tools.
While this creates productivity gains for employers, it also raises important questions about career development. If AI absorbs much of the work traditionally associated with early professional learning, companies must rethink how they train and develop talent rather than assuming those skills will emerge naturally over time.
This does not mean opportunity is disappearing. In fact, many sectors are expected to expand significantly. The U.S. Bureau of Labor Statistics projects strong growth in digital and technical occupations over the next decade, particularly in software development, data analysis, cybersecurity, and healthcare technology. However, growth will not be evenly distributed, and younger professionals understand this reality. They are not simply searching for jobs; they are searching for career environments that strengthen their adaptability in a rapidly changing economy.
Tech layoffs are also spreading into other industries. Automaker General Motors laid off approximately 600 workers in its information technology department, while Walmart is reportedly laying off or relocating around 1,000 employees in its technology and product divisions.
Recruiters say companies have become far more selective, increasingly requiring AI-related skills, combining multiple responsibilities into single roles, and interviewing more candidates for each opening.
“You’re seeing elongated hiring cycles,” said Robert Lucido, senior director of strategic advisory at Magnit, a California-based company that helps technology firms and other businesses manage contractors, freelancers, and contingent workers. “There’s more opportunity to fill the need that they truly want. People still need to decide how to use AI and check the work it generates.”
