New types of downsizing: AI layoffs in the tech industry surge past 39,000

In New York City, workers spill out onto the streets, grabbing a quick lunch amid the city’s constant buzz. — © Digital Journal

AI-driven job disruption across the global tech sector continues. In this context, the firm Snap Inc. becomes the latest company to gut its workforce in the name of AI. In light of this development, a new report examines the scale and impact of technology industry layoffs in 2026.

To provide a clearer picture of this shift, TradingPlatforms analysed layoffs across the tech sector in 2026. Using data from TrueUp, TechCrunch, and multiple state WARN filings, the report identifies the companies behind the largest workforce reductions so far this year, highlighting the most heavily impacted regions and companies in the tech industry.

The essential data shows that roughly 39,088 layoffs recorded worldwide since the start of 2026 have been directly linked to AI implementation and automation-led restructuring. The largest contributor to these reductions is the U.S. technology giant Oracle (25,254 layoffs).Oracle is one of the largest tech companies in the world and it offers software and cloud computing infrastructure to other companies.

This restructuring comes as the company aggressively reorganises around cloud infrastructure and AI-driven enterprise solutions, significantly reducing roles tied to legacy systems and manual processes.

After this, the latest company to lay off employees due to AI adoption is Snap, INC., which cut a thousand positions, expecting $500 million in annualized savings by the second half of the year.

The Tech Companies With the Most Layoffs Due to AI So Far in 2026

1. Oracle – 25,254 layoffs
2. Block – 4,000 layoffs
3. WiseTech Global – 2,000 layoffs
4. Atlassian – 1,600 layoffs
5. Livspace – 1,000 layoffs
6. Snap, Inc. – 1,000 layoffs
7. Meta – 900 layoffs
8. eBay – 800 layoffs
9. Pinterest – 675 layoffs
10. Telstra – 650 layoffs

The most significant workforce reduction in 2026 has, unsuprisingly based on the above, come from the technology giant Oracle, which has cut 25,254 roles as part of a sweeping transformation toward AI-driven cloud infrastructure and enterprise services. The scale of these layoffs reflects a broader shift away from legacy systems, with automation replacing a wide range of administrative, support, and technical functions.

Following Oracle, Block cut 4,000 positions, as CEO Jack Dorsey continues to reposition the company around AI-powered financial tools. Meanwhile, Australia-based WiseTech Global has cut 2,000 roles, with leadership pointing to rapid gains in AI-assisted software development as a key reason for reducing engineering headcount.

Not so much a Disney dream

Also, as mentioned earlier, one of the most recent examples of AI-driven restructuring comes from Snap Inc., which has announced 1,000 layoffs as it accelerates its investment in artificial intelligence across its platform. The company behind Snapchat is increasingly focusing on AI-powered content creation, augmented reality, and advertising solutions, reducing the need for large operational and support teams. This move reflects a growing trend among social media platforms, where automation is reshaping core functions and redefining workforce needs.

Global tech layoffs in 2026 have now reached 84,223 following the latest round of cuts at The Walt Disney Company, which is expected to implement around 1,000 layoffs as part of ongoing restructuring efforts. These reductions reflect a broader industry trend in which companies are streamlining operations, consolidating business units, and increasing investment in automation and digital technologies.

USA leads on tech layoffs

The U.S. accounts for the overwhelming majority of AI-related tech layoffs in 2026, with 65,357 roles cut so far, reflecting the country’s dominant position in the global technology sector. The U.S. is followed by Australia (4,450 layoffs) and India (2,057 layoffs), where companies are also accelerating automation efforts across software development and digital services. In Europe, Austria (2,000 layoffs), Sweden (1,938 layoffs), and the Netherlands (1,700 layoffs) have all recorded notable workforce reductions, while Israel (1,609 layoffs) and Singapore (1,196 layoffs) highlight the growing impact of AI-driven restructuring across key global innovation hubs.

Cloud computing is the hardest hot, followed by software-as-a-service

Cloud and SaaS remain the hardest-hit tech sectors in 2026, accounting for 28,440 layoffs, largely driven by large-scale restructuring at Oracle affecting 25,254 employees worldwide. E-commerce and marketplaces followed with 19,569 layoffs, heavily influenced by Amazon’s 16,000-role reduction.

Social media platforms have laid off 4,097 employees since January, with the latest round coming from Snap Inc as the company continues to scale back operations as part of its AI-first transition. Blockchain & crypto layoffs are also on the rise following StarkWare cutting roughly 70 employees following a sharp revenue decline.

‘Amazon, Meta, Google, and Microsoft alone are expected to invest a combined $650 billion in AI infrastructure this year, and that money has to come from somewhere. Payroll is one of the highest controllable costs on the balance sheet. But this is only half the story. As OpenAI CEO Sam Altman himself acknowledged, there is an element of ‘’AI washing’’ at play, companies attributing to AI what are sometimes poor business decisions or long-overdue rightsizing after pandemic-era over-hiring.

The real picture is more nuanced: AI has essentially split the labour market, creating premium demand for senior engineers who can work alongside AI tools, while simultaneously displacing junior and middle-skill roles. As for what comes next, this is not a temporary disruption. It is the beginning of a structural transformation that will reshape the technology workforce for a generation, and something that should be taken seriously by every person in the wider tech industry.’

– comments Stanislava Savisheva, analyst at TradingPlatforms.

These findings are based on layoff announcements, WARN filings, and independent reports since January 2026. For a deeper look at tech sector layoffs, the factors driving job reductions, and our full research methodology, please refer to the complete report. The raw dataset is also accessible on Google Drive at the following link. It may be used in your work, provided proper attribution is given with a link to the original source.