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The White House Says AI Isn't Killing Jobs As Tech Layoffs Pile Up

Published May 11, 2026
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Summary:
  • Kevin Hassett, White House National Economic Council director, said there is "no sign in the data" that AI is taking jobs.
  • Amazon, Meta, Oracle and Block have all announced AI-related layoffs in recent months.
  • Block cut nearly 4,000 jobs in February, citing a shift to smaller teams using AI.

The White House just delivered a sunny message on AI and jobs. The companies actually deploying AI are sending a different one.

Kevin Hassett, who runs Trump's National Economic Council, told CNBC Monday that AI is not costing anyone a job right now. He said the administration has a "big taskforce" studying what it could mean for workers down the line.

The Layoffs Tell A Different Story

Block announced in February it would lay off nearly 4,000 employees, roughly half the company. The cuts came from a CFO memo that pinned the move on AI.

"We are choosing to shift how we operate at a time when our business is accelerating and we see an opportunity to move faster with smaller, highly talented teams using AI to automate more work," wrote Block CFO Amrita Ahuja.

Amazon, Meta and Oracle have all announced cuts in recent months that lean on the same logic. Fewer workers, more output, AI fills the gap.

The pattern is consistent across the largest tech employers. Each round of cuts has been framed less as cost-cutting and more as a workflow shift.

Every morning, Market Briefs breaks down what moves like this mean for your money in five minutes, plus a free investing masterclass when you join.

The Macro Case Behind It

Hassett's broader pitch is that AI is fueling a productivity boom and a 4% growth forecast. The White House sees companies racing to build factories and data centers, helped by AI investment and the bonus depreciation tax cut.

In that frame, AI is a profit engine that lifts the whole economy. Earnings rise, investment rises, and hiring eventually catches up.

The catch is the gap between the macro and the office. Productivity gains show up in earnings reports before they show up in jobs data.

Workers tend to feel the layoff before economists see the trend.

Worth Noting

The two stories do not have to be wrong at the same time. AI may not be denting national employment numbers yet while still gutting specific teams at specific companies.

Both can be true. The administration's own taskforce on AI and work is still gathering data, and Hassett said the results will inform policy down the line.

For investors, the cleaner read is in earnings calls. Margins are widening at firms that have made AI a headcount story, and that has shown up in stock prices even as the human cost piles up.

White-collar jobs in customer service, copywriting, basic coding, and back-office roles have been hit hardest in the recent rounds. Those are the same job types most exposed to large language models that can already do parts of the work.

Tech is also where the AI tools land first, which makes the sector an early read on what could spread to the rest of the economy.

The next jobs report will say more than the next press release.

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