"In today's economy, tech companies are red hot. In fact, the companies burning cash on AI seem to be some of the only ones having a truly great time, as the corporate rate of profit plummets throughout the US and recession fears loom. Though one economist estimates tech companies accounted for 92 percent of US GDP growth in the first half of 2025, you wouldn't know it by looking at their staff rosters - which seem to be plummeting at an alarming rate."
"Sadly, as Business Insider reports, the bloodbath is far from over. On Tuesday, the AI grading company Mercor - which has massive contracts with corporations like OpenAI and Anthropic - suddenly announced it was shuttering a huge project with Meta, leaving workers scrambling. The Meta Project, called Musen, employed some 5,000 data labelers at its peak, and was previously expected to last until at least 2026, according to BI."
""They kept stressing how happy the client was and how it got extended until the end of the year," one contractor told the publication. "So to then do this major switch up before the holidays took everyone by surprise.""
Tech companies account for a disproportionate share of recent US growth while simultaneously cutting staff and burning cash on AI. One economist attributes 92 percent of US GDP growth in the first half of 2025 to tech firms. Corporate profit rates are falling across the US and recession fears are rising. Major firms like Amazon laid off 14,000 corporate employees despite reporting substantial profits. October saw tech workers face the highest layoffs of any industry, one of the worst months since 2003. AI contractors face sudden project shutdowns, rehiring on different projects, and lower wages.
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