More than 120,000 tech jobs were eliminated globally in 2026, with major companies including Meta, Google, Oracle, Salesforce, and Amazon conducting mass layoffs, according to data from Layoffs.fyi. The cuts have contributed to a sharp decline in industry morale, with reports of burnout rising from 44.4% to 55.7% among 8,200 tech workers surveyed by Lenny’s Newsletter between 2025 and 2026. Career optimism also dropped from 54.8% to 48.7% during the same period.
Therapists in Silicon Valley report an increase in patients expressing existential concerns tied to artificial intelligence and job insecurity. Annie Wright, a Bay Area psychotherapist and executive coach, describes a shift in patient concerns from traditional burnout to broader anxieties about automation, career longevity, and professional identity. Wright notes that patients now frequently cite fears of being displaced by AI or facing sudden unemployment without clarity on future opportunities.
The phenomenon has been labeled "complicity grief" by Wright, referring to the emotional toll on tech workers who feel responsible for advancements that may render their own roles obsolete. Wright highlights cases such as engineers who trained AI models that replaced colleagues, product managers who deployed AI features leading to layoffs, and founders who secured funding for tools that could commoditize entire professions. For those who remain employed, the psychological burden includes guilt over surviving layoffs while peers are affected.
Nick Sanchez, founder of Silicon Valley Therapy and a specialist in high-performing professionals, reports that anxiety over liquidity and financial stability has become a dominant theme in therapy sessions. Sanchez states that many clients are grappling with the uncertainty of whether their roles will exist in five or ten years, as AI adoption accelerates across the industry. The psychological strain is compounded by the rapid pace of technological change, which outpaces traditional career planning cycles.
The Lenny’s Newsletter survey underscores the deteriorating mental health landscape in tech, with burnout rates surpassing half of respondents for the first time. The survey also indicates that career optimism has fallen below 50%, reflecting a growing sense of precarity among workers who once viewed the industry as a stable career path. Therapists note that the psychological impact extends beyond individual job loss, affecting those who remain employed due to survivor’s guilt and fear of future displacement.
Industry analysts attribute the crisis to a combination of economic pressures, AI-driven efficiency gains, and shifting investor priorities. The layoffs, which have affected both junior and senior roles, have created a ripple effect across the tech ecosystem, from startups to established corporations. While some companies cite cost-cutting and restructuring as reasons for the cuts, others point to AI integration as a key driver of workforce reductions.
Therapists emphasize that the mental health toll is not limited to those directly affected by layoffs. Workers who remain employed report heightened stress levels, with many describing a culture of constant vigilance as they monitor industry trends and company announcements. The psychological strain is further exacerbated by the lack of clear career trajectories in an industry where roles are increasingly defined by adaptability to emerging technologies.
The situation has prompted calls for industry-wide interventions, including mental health resources and career transition support. Some tech companies have begun offering outplacement services and counseling to affected employees, though critics argue these measures are insufficient given the scale of the crisis. Therapists and industry observers note that the long-term psychological impact may persist even after the current wave of layoffs subsides, as workers grapple with the erosion of traditional career paths in an AI-driven economy.