AI-driven layoffs in the U.S. tech sector are raising political concerns for the Trump administration. Companies like Salesforce, Microsoft, and IBM have linked job cuts to productivity gains from AI, yet frontline engineers report mixed results and increased workloads. Since late 2022, the information sector has lost over 160,000 jobs, according to Census Bureau and SHRM data, with AI adoption heavily concentrated in this industry. Industry experts warn that claims of automation-driven productivity may be overstated.