Connect with us

Business

Hundreds of applications, no jobs and AI competition: California’s brutal tech work landscape

Published

on

Hundreds of applications, no jobs and AI competition: California’s brutal tech work landscape

Laid-off tech worker Joseph Tinner has spent almost a year hunting for a job. It has been a depressing crash course on the sea change in Silicon Valley.

The former product instructor from the San Francisco Bay Area has ridden the tech wave throughout his career, easily jumping from Verizon to Fitbit to Workday. Since losing his job early last year, the 59-year-old has hit a wall.

He applied for hundreds of roles — sometimes going through multiple rounds of consideration — only to get rejected again and again.

“It’s been a roller coaster,” he said. “It just takes a lot of resilience, honestly, to be in this job market.”

He isn’t alone.

Advertisement

Tech companies that aggressively hired during the COVID-19 pandemic have been slashing tens of thousands of jobs. For workers like Tinner, it has been a rough realization that the Silicon Valley shakeout is stretching into another year.

Just last week, Block — the financial tech company that owns payment services Square, Cash App and Afterpay — said it is laying off 4,000 people, or half of its workforce.

Many other tech companies outside the hot artificial intelligence sector are slashing staff. Block blamed AI, saying the powerful technology means it no longer needs as many people.

“The intelligence tools we’re creating and using, paired with smaller and flatter teams, are enabling a new way of working which fundamentally changes what it means to build and run a company,” Jack Dorsey, the co-founder of Block and a founder of Twitter, said in a post on X.

U.S.-based tech employers announced more than 33,000 job cuts from January to February, up 51% compared with the same period last year, the outplacement firm Challenger, Gray & Christmas said Thursday.

Advertisement

Andy Challenger, workplace expert and chief revenue officer for the firm, said he used to be skeptical that companies could replace workers with AI, but he’s starting to become convinced.

“Artificial intelligence has overtaken the attention of these companies in such a dramatic way,” he said.

Mass layoffs in the tech industry started in 2022, after a hiring surge during the pandemic, when demand for online services increased as people were stuck at home.

But many of the world’s most powerful tech companies have continued cutting, even as their profits have grown. They’ve cited various reasons for layoffs, from strategic shifts and restructuring to pivoting to smaller teams and fewer managers.

An advertisement promoting an AI-powered company is seen downtown on Thursday, Oct. 16, 2025 in San Francisco, CA.

Advertisement

(Manuel Orbegozo/For The Times)

Tech companies such as EBay, Meta, Google, Autodesk, Pinterest, Salesforce and others have been shrinking their workforces. Layoffs have also hit the media and entertainment companies, including Los Angeles video game developer Riot Games.

On LinkedIn, laid-off workers who have been out of work — some for more than two years — have been asking for help finding a job. They’ve been sharing stories about their financial and emotional struggles, including losing their confidence, homes and savings as they search for work.

Tech workers who have seen their employers grow over the last decade have noticed a shift in corporate culture. Workers who have been laid off before said it has been tougher and taken longer to land a new job than in previous years.

Advertisement

A longtime Salesforce employee, who was recently laid off and asked to remain anonymous, concerned that speaking to the media could affect their severance, said the sales software company used to be more focused on helping its employees. Salesforce broadcast this value by highlighting its “ohana,” culture, using the Hawaiian word for family.

“I was just incredibly grateful every day to be able to wake up and make a positive change in the world,” the worker said. “I thought that the company was devoted to the same thing.”

But the tone at Salesforce shifted in 2023 as the company faced pressure to cut costs and increase profits. New leaders came in, and the focus changed.

“The company is trying to erase any semblance of the way that it used to be,” the worker said.

Salesforce has said AI is helping it squeeze more profit from fewer people.

Advertisement

“AI is doing 30% to 50% of the work at Salesforce now,” the company’s co-founder and Chief Executive Marc Benioff told Bloomberg.

Salesforce didn’t respond to a request for comment.

Marc Benioff, CEO of Salesforce Inc., during a Bloomberg Television interview at the World Economic Forum in Davos,

Marc Benioff, CEO of Salesforce Inc., during a Bloomberg Television interview at the World Economic Forum in Davos,

(Bloomberg/Bloomberg via Getty Images)

Although technology is changing the way people work, experts and even some AI executives think companies sometime use AI as an excuse to cut workers in what’s referred to as “AI washing.”

Advertisement

Enrico Moretti, a professor of economics at UC Berkeley, said other factors besides AI are fueling layoffs. As a company grows larger and matures, it doesn’t hire as much as before.

“It’s a shift in their position and the maturing of their product, and therefore the technologies and their employment needs,” he said.

Roger Lee, an entrepreneur who created a website to track layoffs, Layoffs.fyi, in 2020, said in an email that tech companies are pouring billions of dollars into AI investments, and cutting headcount helps offset those costs.

When he started tracking layoffs six years ago, Lee wanted to create awareness around tech layoffs and help laid-off workers find their next job. He never anticipated the layoffs would continue today.

“I do think 6 years of persistent layoffs have led many tech workers to re-evaluate the perceived ‘safety’ of tech jobs and their relationship with the industry overall,” he said in an email.

Advertisement

According to Layoffs.fyi’s latest count, there have been more than 35,000 layoffs in the tech sector worldwide so far this year.

Close to half of that total is from Amazon alone.

Unemployed tech worker Tinner was laid off from Workday, a Pleasanton company that provides a platform to businesses, universities and organizations to manage payroll, benefits, finances and other tasks.

In 2025, Workday slashed roughly 1,750 jobs, or 8.5% of its global workforce, citing a prioritization of investments in artificial intelligence and platform development. Then in February, the company said it plans to cut 2% of its workforce, or roughly 400 employees.

As job cuts pile up, Tinner is up against intense competition in a job market flooded with talent from the top companies in tech.

Advertisement

As he ponders his next career steps, he’s also redefining his identity and relationship with work.

He’s even tried pouring beer for fun or thought about doing more artwork.

“Maybe what I need to do is just celebrate all I’ve done instead of getting back into this rat race, on this treadmill, and look for something totally different,” he said.

Advertisement

Business

Read Nick Bilton’s Letter to Scott Pelley

Published

on

Read Nick Bilton’s Letter to Scott Pelley

Dear Mr. Pelley:

I meant what I said in my letter last week to the 60 Minutes team: joining 60 Minutes is the honor of my career and I am grateful to be working alongside the people who have contributed to the most important television journalism brand this country has ever produced. While I’m new to 60 Minutes, I’ve devoted my career to investigative journalism and storytelling. I started this job excited to collaborate and to benefit from the wisdom and experience of the 60 Minutes veterans, with you among them. For that reason, one of the first things I did in my new role was call you to talk and invite you to dinner. It is a profound disappointment that you rejected that overture and chose ambush instead. Yesterday, you hijacked my first meeting with staff to disparage me, my qualifications, and my intentions with remarkable incivility and contempt. I welcome a diversity of viewpoints and respectful debate among the team, but this was nothing of the sort. Yesterday’s performative display of hostility enacted in front of the staff instead of in a civil, private conversation-demonstrated that you have no interest in contributing to the future success of the show, or approaching my new tenure with a mind open to collaboration and progress. I am here to deliver first-in-class news programming, not to make headlines about newsroom drama. I am eager to work alongside those who share this goal.

Despite yesterday’s misconduct, I had hoped that in sitting down with you today we could find a path forward together. You made clear that you are not interested in such a path.

Your antipathy to the future of the show has come through loud and clear. And I have heard you. I therefore write on behalf of CBS News, Inc. (“CBS”) to inform you that your employment with CBS is terminated for cause effective immediately. Enclosed is your formal termination letter.

Sincerely,

Nick Bilton

Executive Producer, 60 Minutes

Continue Reading

Business

Aspiration co-founder sentenced to 14 years for fraud

Published

on

Aspiration co-founder sentenced to 14 years for fraud

The co-founder of Aspiration, Joseph Sanberg, was sentenced to 14 years in prison on Monday after defrauding investors and lenders of over $248 million.

The startup, an eco-friendly digital banking company boasting fossil fuel-free investments, carbon offsets for gas purchases, and a debit card with cash-back benefits for shopping at clean companies, was founded by Sanberg and Andrei Cherny. Cherny left the company in 2022 and has not been charged.

Sanberg, an Orange County native, pleaded guilty to wire fraud in October after being arrested in March last year. Aspiration subsequently filed for bankruptcy and liquidated all of its assets by July.

Sanberg and venture capitalist Ibrahim AlHusseini, who also faces charges, together forged a series of bank statements in order to obtain loans. From 2020 to 2021, the pair forged AlHusseini’s bank statements to show millions of dollars in assets in order to obtain millions of dollars from lenders.

Advertisement

Additionally, they forged a letter from their audit committee stating that $250 million in funds were available, when in reality Aspiration had less than $1 million. The amount of loans defrauded exceeded $248 million.

In 2021, Sanberg artificially inflated Aspiration’s 2021 revenue by $44 million by recruiting 27 fake customers to sign letters of intent pledging tens of thousands of dollars per month for tree planting services. Sanberg himself funded the contracts and used the inflated revenue numbers to obtain more loans.

The charges sparked an NBA investigation into salary cap allegations due to Aspiration’s connections with Clippers owner Steve Ballmer.

Ballmer personally invested $60 million in Aspiration, all of which was lost. He is now the target of a civil lawsuit alleging his participation in the scheme. Ballmer denies the allegations.

The team announced a $300-million sponsorship deal with Aspiration, and Clippers player Kawhi Leonard signed a four-year, $28-million marketing contract with the company, which reportedly performed no duties. The issue has raised concerns about how players are circumventing the NBA’s salary cap.

Advertisement

The team lost the $300-million sponsorship deal and an additional $20 million paid for carbon offset purchases.

Continue Reading

Business

Monterey Park takes landmark vote on banning data centers

Published

on

Monterey Park takes landmark vote on banning data centers

Residents in the city of Monterey Park will be the first in the nation to vote on a permanent ban on data centers Tuesday.

If approved, Measure NDC would prohibit data centers within the city limits and could only be overturned by another vote.

Yard signs saying “No Data Center” in English and Chinese with images of dragons line sidewalks in the San Gabriel Valley city.

As a wave of data center opposition sweeps the country, numerous towns and counties across the U.S. have instituted temporary moratoria and other restrictions on the facilities. But only a handful have instituted indefinite bans, and just four other towns have sent related matters to the ballot.

Advertisement

Supporters are hoping the vote will set a precedent for the rest of the region, where residents are fighting proposals in Vernon and City of Industry.

“This is about as permanent a ban as we can get,” said Steven Kung, co-founder of the group No Data Center Monterey Park. “Winning Measure NDC would send a huge message to the rest of the San Gabriel Valley about how residents don’t want data centers.”

The ballot measure emerged from the fight against a 247,000-square-foot center proposed in 2024 by the Australian-owned investment firm HMC StratCap for a residential area in Monterey Park.

The facility would have sat less than 500 feet away from the nearest home and used three times the electricity of the 60,000-person, predominantly Asian American city.

While the developer touted the potential for jobs and tax revenue, residents expressed concerns about noise and air pollution, rising electricity rates and a potential to lower property values.

Advertisement

The company pulled its plans in late March following public outcry and a March 4 city council vote to extend a temporary data center moratorium and place a ban on Tuesday’s ballot.

In a letter to the city council, HMC StratCap said it would pursue a different use for the land and would not engage in a ballot measure fight.

The city council later banned data centers indefinitely, the first in California to do so, said Mayor Elizabeth Yang. But she’s still been out campaigning for the measure with all four other council members.

“If a council puts in an ordinance, a future council can reverse it too,” said Yang. “With the ballot measure, unbanning it is a lot harder because you need the entire city to vote on it.”

The measure proposes the ban “to protect air quality, drinking water resources, and public health” and “prevent impacts to electricity and water rates.”

Advertisement

While California places third in the country for existing data centers with about 300 facilities, it hasn’t been a hot spot in the recent AI-driven data center boom. High electricity rates, expensive land and regulatory hurdles mean that fewer, and smaller, facilities are currently planned than in Virginia, Texas, Georgia, Illinois or Arizona.

“Most of California’s data centers are small by today’s standards,” said Shaolei Ren, an engineering professor at UC Riverside who studies how to reduce the environmental impacts of data centers. “Ten years ago, they would be medium-sized, but the power demand for new AI data centers has increased a lot.”

The average operating data center demands 45 megawatts, according to the Washington Post, while the average planned one would draw 430 MW. The one proposed for Monterey Park would have required about 50 MW at peak demand.

As proposals crop up in SoCal, they’re met with fierce opposition. Montebello, El Monte and Baldwin Park have all enacted temporary moratoria, and Alhambra recently banned data centers as part of a zoning code update. City of Industry, Vernon, City of Commerce and Santa Fe Springs are moving in the other direction, trying to court developers and streamline data center approvals. Community groups are fighting that.

Outside the San Gabriel Valley, residents of Coachella and Imperial County are showing up in droves to protest local proposals.

Advertisement

Matthew Shaw, a volunteer with the Coalition for Responsible Data Center Development, who recently published a report on opposition to AI data centers, said a vote to ban them in Monterey Park “would lead to copycats, partially because so many groups are just opposed to any data center development at all.”

While there is no formal opposition to Measure NDC, some building trades like Ironworker Local 433 supported the Monterey Park data center when it was still live before city council. Those in the data center industry are lamenting the state of public opinion.

“These are multi-billion-dollar assets that are built by multi-trillion-dollar companies. These things will get done,” said Mehdi Paryavi, chairman of the International Data Center Authority. “My biggest problem is that our industry does not invest enough in community engagement.”

Paryavi said towns that seek to limit data centers are missing out on thousands of jobs generated by data center construction, operations and customers, as well as faster artificial intelligence speeds and better performance.

Kung said local community organizers are “looking at the empirical evidence” and seeing a ban as a win.

Advertisement

“We’ve never seen a city that embraces a data center and is like, ‘Look how our quality of life has increased, look how all the revenue has gone into citywide improvements,’” he said. “That just doesn’t exist.”

Continue Reading
Advertisement

Trending