Austin tech workers face layoffs as companies shift resources to AI
Oracle and Expedia have laid off hundreds of workers in Austin over the past month, redirecting funding toward artificial intelligence development. The moves signal how major tech employers are restructuring operations around AI rather than replacing workers outright.
Oracle notified employees last week that they were being terminated as part of nationwide layoffs affecting thousands. Expedia issued a WARN Notice in February indicating 100 Austin-area employees would lose their jobs.
Liz McGary, who managed a NetSuite team at Oracle for four and a half years, received her termination notice Tuesday. She said Oracle's most recent earnings report signaled the company was funding restructuring, which tipped her off that layoffs were coming.
"When I got the email on Tuesday, I was not as caught off guard as maybe others might have been, but it still hurt," McGary said. "I know I'm a good, capable worker, but I also know that Oracle has changing business needs."
McGary said the company is shifting resources to AI development, pulling funding from other departments. She doesn't expect AI to replace her work directly.
Oracle and Expedia declined to comment on the scope of layoffs or the role of AI in their restructuring decisions.
Jobs will change, not disappear
Kevin Frazier, director of AI innovation and law at the University of Texas at Austin School of Law, said the local economy will change as AI adoption grows, but warned against viewing the shift through fear alone.
"There's no one silver bullet that answers, you know, 'What caused this job to be displaced?' or 'What caused this job to disappear?' Instead, what we need to ask is, 'How do we create the next jobs?'" Frazier said.
Joydeep Biswas, an associate professor of computer science at UT Austin, said developers will use AI tools differently rather than being replaced by them. Code developers may use AI to speed up the coding process, but the tools have limitations.
"I think it's worth us understanding what these tools are capable of and what they're not capable of, making use of them productively to amplify what we can do in the compressed amount of time, but also being vigilant, constantly being vigilant," Biswas said.
Developers affected by layoffs can build skills in AI integration. Resources like an AI Learning Path for Software Developers provide structured training on how to work with AI tools effectively in development workflows. AI Coding Courses also help professionals understand how to use these tools to remain competitive.
McGary has filed for unemployment and encourages others impacted by layoffs to do the same while searching for new positions. She remains optimistic about the job market ahead.
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