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Texas ranked near the bottom nationally in AI job listings despite six-figure average salaries.
Artificial intelligence is actively transforming the tech workforce, leading to the creation of new roles while simultaneously causing widespread layoffs across the industry. Despite being recognized as a major tech hub, Texas is significantly lagging behind most other states when it comes to AI-related job listings. A comprehensive study conducted by Wing Assistant, a virtual assistant and jobs company, analyzed AI job listings across all 50 states. Their findings revealed that Texans in the AI industry earn an average annual salary of $129,066, based on 72 job listings. However, this six-figure average places Texas at a low 36th rank nationally. In contrast, New York AI workers boast a higher average of $182,000 across 102 job listings, with some salaries reaching up to $412,500. North Dakota ranked last with an average of $94,000 from 32 listings, while Washington led with the most AI job listings (114) and an average salary of $152,930. The rapid investment by companies into artificial intelligence is directly linked to an acceleration of layoffs within the tech sector, including in Austin. According to a report by UK-based TradingPlatforms, the U.S. has experienced approximately 65,357 AI-related job cuts in 2026. Globally, about 39,088 layoffs this year have been directly attributed to the implementation of AI and automation. A growing concern among Americans about job displacement by AI is evident; a March poll by Quinnipiac University found that 70% of Americans anticipate a decrease in job opportunities due to AI advancements, with 30% believing their own jobs could soon become obsolete. In response to this shift, Austin's Gauntlet AI has been running a 10-week, all-expenses-paid retraining program for software engineers, graduating around 300 individuals who are then placed in new AI software engineering roles nationwide. Ash Tilawat, CTO of American-Statesman, highlighted that traditional educational institutions are not adapting quickly enough. He emphasized that creativity is the most valuable asset in the AI era, stating, “AI is always going to be the general consensus of knowledge around the world. So once you become AI native, you unlock that creativity, intelligence, knowledge and information that makes you more valuable.”
The trend of AI-driven layoffs is notably fueled by significant investments from major tech companies, with Austin-based Oracle Corp. being a prominent example in 2026. Oracle, an AI infrastructure company that relocated its headquarters to Austin in 2020, recently laid off more than 25,000 employees through email. The company attributed these extensive job cuts to organizational restructuring and strategic reinvestments in other core businesses, specifically its cloud infrastructure and data center initiatives, which are crucial for supporting AI growth. Similarly, Meta, the parent company behind Facebook and Instagram, announced intentions earlier this month to reduce its global workforce by 10% as it continues its aggressive investments in AI. Janelle Gale, Meta’s chief people officer, stated that these layoffs are part of an ongoing effort to improve company efficiency and free up resources for other strategic investments. This decision by Meta followed its earlier action of shutting down three Austin-area gaming studios as part of a broader reorganization focusing on virtual reality and wearable technology. At the close of last year, Meta employed roughly 78,000 people globally, with an estimated 2,000 in the greater Austin area, according to Opportunity Austin’s latest figures. Furthermore, Microsoft implemented its first-ever buyouts for 7% of its U.S. employees last week. While Microsoft employed 1,000 people in Austin in 2023, this number has likely decreased due to multiple rounds of layoffs. Other major tech players, including Expedia (which has a substantial presence in Austin), Amazon (laying off 16,000 workers since January), Salesforce (cutting about a thousand), eBay, Peloton, T-Mobile, and Pinterest, have all significantly reduced their workforces by hundreds of jobs since the beginning of 2026, primarily to accommodate increased AI integration. Tilawat reiterated the necessity for adaptation: “The way we fundamentally do work is changing, and we have to rethink how we’re coding... But engineering became the first pathway, the first thing that changed really quickly. We’ve been forced to adapt or die.”