Even with the surge in Artificial Intelligence developments, many former senior program and tech professionals in Silicon Valley aren’t reaping the benefits. These individuals, who used to earn between $310,000 and $340,000 annually, now find themselves relying on their savings and their partners’ incomes due to the swift changes in the industry.
Basem Istanbouli, a former Google employee, shared his perspective: “A lot of people seem to lack empathy for tech workers… they think, ‘Well, at least they got severance packages.’ But mine wasn’t substantial at all. Without my partner, I don’t think I could stay in the Bay Area.”
Interestingly, despite Silicon Valley attracting $92 billion in venture capital last year—83% of which went to AI firms—there was still a net loss of 13,100 jobs, according to Joint Venture Silicon Valley’s 2026 Index.
In fact, job postings for software roles across the country are currently down by 23% compared to pre-pandemic levels, as reported by data from job site Indeed.
One former Amazon machine-learning expert, who holds a PhD, launched a startup that ultimately failed. He recounted applying for 120 jobs within two months without receiving a single offer, even after going through several rounds of interviews with one particular company.
“It seems having been a startup founder works against you. They expect you to fall back into a more traditional role, and they hesitate to hire someone who’s ventured out on their own,” he expressed. “In tech, the expectation is to be a workhorse—just execute tasks without offering ideas.”
This former scientist, now facing responsibilities like a child and a mortgage, mentioned that his spouse’s job is essential for their family’s health insurance. They’ve even discussed possibly seeking social assistance if he can’t secure employment soon.
Feeling reluctant to share the news of his startup’s failure with friends, he noted, “It’s embarrassing to admit. Putting ‘open to work’ on LinkedIn feels like broadcasting my struggles.” But, he added, if it comes down to it, he’ll have to set his pride aside.
Meanwhile, executives at companies like Anthropic and OpenAI are eyeing billion-dollar stock market launches, with reports showing their co-founders raking in significant wealth earlier this year.
In the midst of ongoing layoffs, Oracle plans to let go of 441 workers in various locations in November. The company noted an overall reduction of nearly 13% in its workforce, citing a correlation between this decline and the adoption of AI technologies.
Reports indicate that the push for AI is directly linked to job cuts, with employers attributing 116,175 layoffs this year to the increased use of automation and AI solutions.
Seeking some respite, Istanbouli reached out on Reddit, hoping to find others in similar situations for weekday hikes. To his surprise, three people turned up. However, the group has now expanded to 1,783 members, mainly consisting of unemployed tech workers, who find camaraderie through weekly hikes and social gatherings.
Yang Jin, a PhD holder who was laid off from her biotech job, echoes similar struggles. She applied to numerous positions but faced continuous setbacks. “Initially, it felt like a regular layoff where you’d just look for a comparable job. But finding anything suitable became increasingly difficult, especially as jobs in lab work are automated,” she pointed out.
With automation encroaching even on lab work, Yang has opted to stay home for now, focusing on learning how to build AI applications as a potential path to a new career.
Her husband, Xingtao Zhao, who also previously worked at Google before switching to an augmented-reality startup, now finds himself needing to rethink his career strategy. Despite his advanced qualifications, he has faced numerous interviews without success.
In response, he has pivoted to using AI for a quantitative stock trading venture alongside a friend who shares a similar background. “I do quant trading full time while still searching for other job opportunities,” he stated, highlighting how even this sector feels the competitive squeeze from an influx of new entrants.
“AI’s influence on the job market is massive… Yes, it may eliminate some traditional roles, but I believe it will also open the door to new opportunities,” Zhao commented, reflecting on the paradox of technological advancement.
In closing, Istanbouli had some thoughtful advice for those facing similar situations: “Many people find that their identity is tied closely to their jobs. When you leave that behind, it can feel like losing everything. It’s crucial to establish a community outside of work to find support and happiness during tough times.”
