Tech CEOs Warned of ‘AI Psychosis’ as Industry Lays Off Over 115,000 Workers

Box founder Aaron Levie warned that tech CEOs are experiencing an "AI psychosis," a disconnect between hype and the gritty work still required to deliver value. In the first five months of 2026, layoffs hit 115,430 employees across 152 tech firms, a pace that rivals the entire previous year. Executives cite AI as a driver, yet research from UC Berkeley, MIT and the National Bureau of Economic Research finds little concrete productivity gain. The clash between lofty AI promises and harsh workforce reductions is reshaping the sector. Read more