A wave of layoffs continues to impact the technology sector in 2026, with over 175,000 job cuts reported so far this year. This follows more than 245,000 tech worker layoffs in 2025. Many companies are citing the increasing capabilities and adoption of artificial intelligence (AI) as a primary driver for these workforce reductions, as operations shift to accommodate new technologies.
Oracle has seen the largest impact on layoffs this year, cutting 21,000 jobs, or approximately 13% of its workforce, over the past year. The company’s annual financial disclosure on June 23 stated that the deployment of AI technologies has resulted, and may continue to result, in workforce reductions. Microsoft also initiated a new round of layoffs in July, affecting 4,800 jobs, primarily within its Xbox gaming division. Xbox chief Asha Sharma noted 3,200 roles would be cut through fiscal year 2027, with 1,600 people let go on July 6. Sharma was subsequently appointed to a U.S. Federal Reserve task force to advise on productivity and jobs.
Other major companies have also announced significant job cuts. Visa plans to reduce its workforce by about 2,600 jobs, or 7%, mainly in technology and product teams, partly to enhance efficiency and accelerate AI adoption. Samsung is eliminating 179 jobs as it relocates its New Jersey headquarters to Texas, a move expected to affect around 1,000 workers, with 739 roles impacted in New Jersey and 100 in Texas’s mobile division. TikTok will lay off 250 people and close its Nashville, Tennessee office in October to streamline operations.
In June, EV automaker Lucid cut about 18% of its workforce to boost profitability. Trading platform Robinhood plans to lay off 10% of its staff, or around 290 jobs, as it restructures and explores frontier technologies. Cloud computing company Rackspace laid off 750 workers, or 15% of its workforce, due to a shift in focus toward AI. Salesforce also laid off at least 86 employees in California, with additional cuts in Washington and internationally, affecting teams involved with its Agentforce AI product, Mulesoft IT integration tool, and Marketing Cloud software.
Earlier in the year, Meta began cutting 10% of its workforce, totaling around 8,000 employees, and plans to close 6,000 open roles to allow for more AI spending. PayPal intends to cut nearly 4,800 employees, about 20% of its staff, over the next few years to remove duplication and accelerate AI adoption. Website builder Wix announced cuts of around 20% of its staff, impacting about 1,000 roles, citing industry changes brought by AI and the need for a leaner organization. Intuit is planning to lay off 3,000 employees, or about 17% of its workforce, to focus on infusing AI across its services.
In April, Nike announced 1,400 job reductions, primarily in technology, as part of global operational changes. Snap is laying off 1,000 workers, 16% of its staff, and is using AI to streamline operations. Disney announced 1,000 layoffs, with Marvel also reducing its staff by 8%, as the company assesses how to foster a more agile and technologically-enabled workforce. Amazon is temporarily closing a warehouse in Homestead, Florida, eliminating over 600 jobs, though employees have the option to relocate.
In March, Oracle began a significant reduction of its employee base, with 21,000 people ultimately laid off to stem a cash drain related to AI infrastructure expenditures. Epic Games laid off over 1,000 workers due to a downturn in Fortnite engagement, with CEO Tim Sweeney stating the cuts are not AI-related. Atlassian laid off approximately 1,600 employees, about 10% of its workforce, to self-fund further investment in AI and enterprise sales.
California Governor Gavin Newsom unveiled a tool in June to track AI’s impact on the workforce, emphasizing the state’s efforts to prepare through governance and policy. Over 4,500 Google workers signed a petition calling for layoff protections, including buyouts and guaranteed severance.
