SPECIAL REPORT | Tech layoffs 2026: AI restructuring, cost cuts drive 30,000 job losses in first weeks
The early wave of cuts underscores a structural shift in how major technology firms operate — prioritizing artificial intelligence integration, automation and tighter cost controls over headcount growth.
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More than 30,000 technology workers worldwide have been laid off in just over a month since the start of 2026, signaling that the industry’s post-pandemic workforce correction is far from over.
Data compiled by RationalFX, a U.K.-based foreign exchange and international payments firm, from multiple tracking sources show at least 30,700 job cuts announced globally since January, with the majority concentrated in the United States. The pace of reductions suggests that if current trends continue, total layoffs this year could surpass 2025 levels, when roughly 245,000 tech jobs were eliminated.
The early wave of cuts underscores a structural shift in how major technology firms operate — prioritizing artificial intelligence integration, automation and tighter cost controls over headcount growth.
U.S. dominates early 2026 layoffs
Of the 30,700 global layoffs recorded so far, about 24,600 — or just over 80% — occurred in the United States across 38 companies. The largest workforce reductions came from Amazon, Meta and fintech firm Block.
An unusual entry in the early 2026 tally is the British Virgin Islands, where blockchain platform Polygon cut 60 roles, briefly placing the territory among the top 10 countries affected by tech layoffs.
In Europe, Sweden leads after Ericsson announced 1,900 job cuts, largely in its home market. The Netherlands follows with about 1,700 layoffs tied to semiconductor equipment provider ASML.
In Asia, India has recorded roughly 900 layoffs so far this year, followed by Israel with 774. Major technology hubs such as Japan and Indonesia have not yet reported significant layoffs, while reporting transparency in China remains limited.
Amazon’s massive workforce reset
Amazon accounts for the largest share of early 2026 cuts, announcing approximately 16,000 job reductions after nearly 20,000 layoffs in 2025.
The reductions come despite the company reporting $716.9 billion in revenue in 2025, up 12% year over year. Management said the restructuring aims to streamline reporting lines, accelerate decision-making and improve operational efficiency.
At the same time, Amazon continues heavy investment in artificial intelligence and cloud infrastructure, with projected capital expenditures of $200 billion in 2026. The juxtaposition — record revenues alongside deep workforce cuts — reflects a broader industry pattern: growth in AI infrastructure, contraction in human-intensive roles.
Europe’s telecom, chip giants restructure
Ericsson’s 1,900 job cuts reflect ongoing pressure in the global 5G market. The company cited cost-efficiency measures and intensified competition as reasons for the reduction, with most roles eliminated in Sweden.
ASML, meanwhile, is cutting about 1,700 positions, roughly 4% of its global workforce, even after reporting record sales and profits in 2025. The company said the move aims to simplify its organizational structure and sharpen its engineering focus. Most affected roles are in management, technology and IT.
Meta, Block and enterprise software trim headcount
Meta has eliminated about 1,500 jobs, representing about 10% of its Reality Labs division. The move signals a shift away from costly metaverse investments toward artificial intelligence priorities. Reality Labs has posted multiyear losses as Meta refocuses capital toward AI-driven products.
Block, led by co-founder Jack Dorsey, announced about 1,100 job cuts — roughly 10% of its global workforce — as part of restructuring efforts to flatten management layers and improve efficiency. The company has conducted three major rounds of layoffs in recent years.
Enterprise software firms are also adjusting. Autodesk and Salesforce each announced roughly 1,000 job cuts, reflecting continued cost discipline following rapid hiring during the pandemic-era tech expansion.
Washington surpasses California
In 2026, several U.S. cities stand out as the headquarters of the largest contributors to global tech layoffs. Seattle, home to Amazon and Microsoft, tops the list with 16,590 employees affected worldwide, followed by San Francisco with 4,446 layoffs and Menlo Park, home to Meta, with 1,500 reductions.
In Europe, the pattern is similar. Stockholm, where Ericsson is based, saw 1,900 employees affected worldwide, while Veldhoven, home to ASML, accounted for 1,700 layoffs.
The state of the tech industry
The tech sector continues to navigate the aftermath of the COVID-19 pandemic, which has affected more than a million tech employees worldwide since 2021. The first month of 2026 has already seen a surge in layoffs, and based on current trends, if job cuts continue at the same intensity, total reductions could reach 273,305 by year-end, surpassing 2025’s 245,000 layoffs.
Last year’s mass redundancies were largely driven by automation, AI-driven job displacement and broader cost-cutting strategies. While roles most easily replaced by automation were initially the first to go, recent rounds of cuts — including at Microsoft, which eliminated 6,000 positions, among them a senior AI director — show that even high-level roles are no longer immune.
Employers are placing increasing emphasis on AI expertise as a core requirement when evaluating candidates. Historically, companies have attempted to mitigate layoffs through reskilling and redeployment, but some executives argue that simply moving employees into new positions is not a sustainable solution. The coming months will reveal whether tech firms in 2026 continue to prioritize cost-cutting and downsizing or whether the rise of AI and related technologies will drive the creation of new roles across the industry.
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