Tech Report: Tech layoffs rise as companies increase AI investments

Technology companies announced the highest number of job cuts in nearly two years during May as firms continue investing heavily in artificial intelligence.

(NBC)- Technology companies announced the highest number of job cuts in nearly two years during May as firms continue investing heavily in artificial intelligence.

According to outplacement firm Challenger, Gray & Christmas, the tech sector announced plans to eliminate 38,000 positions last month, the largest number of cuts since August 2024. So far this year, technology companies have announced 123,000 job reductions.

Meanwhile, Microsoft is facing scrutiny over an internal memo reportedly outlining plans for a new artificial intelligence assistant known as Scout.

According to reports, the AI tool, previously known as ClawPilot and developed under “Project Lobster,” was designed to integrate deeply into users’ daily activities by helping manage calendars, edit emails and prepare for meetings.

The New York Post reported that critics viewed the memo as evidence Microsoft hoped to make the assistant an indispensable part of users’ routines.

Cash App is also introducing a new payment device aimed at younger consumers.

The company unveiled a contactless payment tool called the Cash App Wand, a $25 device that can be attached to a keychain, bag or clothing. The NFC-enabled gadget allows users to make payments without pulling out their phones.

The wand is part of Cash App’s new hardware lineup designed around tap-to-pay technology.

A new survey also suggests many Americans are frustrated with software updates.

The poll of 2,000 U.S. adults found that 54% believe software updates often make their devices worse rather than better. Many respondents said they believe updates are designed to encourage consumers to purchase premium features or upgrade to newer devices.

The survey was commissioned by UserTesting and conducted by Talker Research.