Tech Industry Job Cuts Exceed 2025 Levels Amid AI Pivot

According to the Crunchbase Tech Layoff Tracker, which follows U.S. tech employers cutting jobs, technology sector layoffs in 2026 are outpacing last year’s pace, though they arrive in sharp bursts rather than a steady trickle.

Between January and August, U.S. tech layoffs hit a minimum of 94,046, marking a 16.8% increase compared to the 80,486 recorded during the same timeframe in 2025. Unsurprisingly, a significant portion of these cutbacks stemmed from tech firms redirecting capital toward artificial intelligence and restructuring operations to trim expenses.

The year kicked off with intense layoff activity. After job reductions dropped significantly in December 2025 to 5,151, they rebounded past 20,000 in January. May proved especially severe, driving the year-to-date surge by recording 31,513 layoffs—which included Meta trimming 8,000 jobs—representing the highest monthly total since March 2023, when cuts reached 36,602.

The months following May indicate a deceleration. Layoffs decreased month-over-month, dropping to 2,347 in August. Combined layoffs for June through August 2026 reached 19,331, down 16.2% compared to the same period the previous year. This downward trend points to recent stabilization, though determining if this marks a permanent reversal remains premature.

Roger Lee, founder of Layoffs.fyi, pointed out that artificial intelligence has emerged as a much more frequent justification for workforce reductions. AI was cited in 33% of tech layoff events this year, a sharp rise from just 1% in 2024. His tracking attributes 92,913 layoffs globally, representing 72% of the total for the year, to artificial intelligence.

“There’s been little evidence that AI is actually replacing the work of the human employees let go,” Lee remarked regarding the largest AI-attributed layoffs of the year. He suggests that established technology companies are investing heavily in AI while cutting expenses elsewhere in hopes of boosting productivity with leaner teams.

Companies cutting

Throughout 2026, major technology enterprises, publicly traded firms, and startups alike have implemented substantial workforce reductions.

Significantly, mirroring trends from the previous year, public tech companies have accounted for the majority of layoff headlines in 2026, spearheaded by Amazon and Meta.

“Big companies [have] made up about 87% of everyone laid off in 2026, which is similar to last year, when they made up 85%,” Lee stated.

Amazon accounted for 17,388 cuts through August of this year, which included a 16,000-worker reduction announcement in January followed by multiple smaller waves. Meta followed with 10,400 layoffs, including an 8,000-position cut executed in May that comprised 10% of its workforce.

Microsoft and PayPal recorded the next-highest totals, eliminating 4,800 and 4,760 positions, respectively. Block, Cisco, and Cognizant each logged 4,000 layoffs, followed by Intuit with 3,000, Amdocs with 2,900, and Visa with 2,600. Notably, the top 10 list encompasses diverse sectors, including enterprise technology, cloud computing, social media, and digital payments.

Additionally, reports indicate Oracle’s workforce decreased by approximately 21,000 employees during its fiscal year ending May 31, 2026. However, because the exact headcount and precise timing for individual reductions remained unclear, that total was excluded from the tracker.

Among privately held corporations in the tracking data, Epic Games posted the largest disclosed total at 1,000, trailed by HR software provider UKG with 950 and MyHeritage with 500. These totals remain considerably lower than major public company reductions, though unreported layoff figures restrict direct comparisons between the two groups.

Furthermore, early September reports noted that Uber laid off 3,300 workers, amounting to 10% of its total workforce.

An AI focus

Andrew Challenger of Challenger, Gray & Christmas explains that artificial intelligence influences employment in two distinct ways. Certain tasks, such as coding, can now be executed by smaller teams. “There are jobs that are literally being replaced by artificial intelligence,” he told Crunchbase News.

Simultaneously, corporate priorities are shifting. Businesses are channeling more funds into AI while downsizing departments dedicated to other business segments. “They’re letting people go from one area of their organization while they might even be hiring in an area that is focused on AI,” Challenger noted. This dynamic explains why a company might execute layoffs while concurrently advertising open positions.

Challenger added that the technology sector has announced more job reductions than any other industry this year. Across the broader U.S. economy, layoffs have decreased slightly from last year, though that metric is skewed by high federal job cuts in 2025. Compared to the post-pandemic era, when employers faced severe hiring challenges, current layoff rates remain elevated.

To date, few industries outside of technology have attributed workforce reductions to artificial intelligence, according to Challenger.

Nevertheless, he sees potential positive outcomes, particularly for software developers. If AI lowers the cost of software development, firms in external industries might initiate projects previously deemed too expensive. Such developments could generate employment outside the tech sector, though determining whether these new roles will offset current job losses is premature.

Moreover, indicators suggest certain organizations may be reversing course on past staffing decisions. A Business Insider report reveals that Amazon is contacting eligible former employees regarding open positions across the company, including within its cloud computing and AI divisions.

Methodology

Layoff data originates from The Crunchbase Tech Layoffs Tracker, which documents reported job reductions at U.S. technology employers. The tracker monitors layoffs executed by U.S.-based companies—both public and private—or those maintaining a significant U.S. presence, and undergoes updates at least bi-weekly. Layoff and headcount totals represent best estimates derived from public reporting. Actual job reduction figures are likely higher than reported, as numerous companies decline to disclose exact headcounts when announcing workforce cuts. Additional details regarding the tracking methodology are available within the tracker’s methodology section.

Related reading:

• The Crunchbase Tech Layoffs Tracker

Illustration: Dom Guzman

?Frequently Asked Questions

01Why are tech layoffs increasing in 2026?

Tech layoffs are outpacing last year’s numbers as major companies shift their capital spending toward artificial intelligence and restructure operations to reduce expenses.

02Which companies have announced the most layoffs in 2026?

Public technology giants have driven the majority of 2026 layoffs, led by Amazon and Meta, followed by companies like Microsoft, PayPal, Block, Cisco, and Cognizant.

03Is AI actually replacing human workers?

According to industry experts, while some specific tasks like coding are being done with fewer people, much of the AI-driven spending involves companies shifting resources and cutting costs in non-AI sectors while simultaneously investing in new AI teams.

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