PAYPAL, COINBASE CUT JOBS AS AI UNCERTAINTY WEIGHS

Both payment and cryptocurrency platforms are reducing headcount amid concerns about AI's commercial viability and market impact. The moves align with broader weakness in software equities, which continue to absorb uncertainty around AI adoption rates and profitability. Palantir also reported disappointing commercial sales, adding to investor concerns about near-term demand for AI-adjacent services. The mixed signals from major tech firms suggest companies are reassessing growth projections and cost structures in response to shifting market expectations. Layoffs in the fintech and software sectors have accelerated this year as companies adjust to higher interest rates, changing investor priorities, and questions about which AI applications will generate meaningful revenue. Industry analysts note that while AI investment remains high, companies are becoming more selective about deployment and hiring decisions. The moves underscore ongoing tension between long-term AI development bets and near-term profitability pressures facing the tech industry.