The wave of layoffs across the global technology industry shows no sign of cooling. According to data compiled by TrueUp, a site that tracks the tech job market, more than 200,000 workers in the sector have lost their jobs since the start of 2026, compared with roughly 245,000 for all of 2025. Notably, this year’s pace of cutbacks is already running ahead of last year’s even though the year is not yet over.
What sets this wave apart is that it is no longer confined to struggling businesses. Many companies are still posting revenue and profit growth, yet are proactively shrinking their organizations to redirect resources toward artificial intelligence (AI).
The largest rounds of cuts
Oracle currently accounts for the biggest single round of cuts this year. In financial filings published on June 23, the American software group said it had reduced its workforce by 21,000 over the course of a year, equivalent to about 13% of its employees. The company said its push to deploy AI across operations had forced it to streamline staffing, and it did not rule out further layoffs ahead.
Other major names have followed with their own downsizing plans. Meta began letting go of about 8,000 people, equivalent to 10% of its workforce, while canceling 6,000 open positions, citing the need for more budget for AI investment. Atlassian cut about 1,600 staff, also about 10%, to reinvest in AI and its enterprise-customer business. PayPal expects to reduce nearly 4,800 people, or about 20% of its total workforce, over the next few years to eliminate duplicative roles and expand automation.
Among smaller companies, Canva has cut more than 1,200 staff, equivalent to 22% of its total workforce, as it merged its product, growth and platform teams. Squarespace reduced its workforce by 19%, about 300 people, to simplify operations. Dropbox reportedly let go of about 200 people, or 9%, mainly in engineering, product, design and administrative functions; Chief Technology Officer Ali Dasdan also left the company.
| Company | Positions cut | Share of workforce |
|---|---|---|
| Oracle | 21,000 | ~13% |
| Meta | 8,000 | ~10% |
| PayPal (projected, over next few years) | ~4,800 | ~20% |
| Atlassian | ~1,600 | ~10% |
| Canva | ~1,200 | 22% |
| Netflix | ~1,000 | 6% |
| Squarespace | ~300 | 19% |
| Dropbox | ~200 | 9% |
Note: Figures are based on company disclosures and TrueUp data; some cases are plans that have not been completed.
In October, Amazon continued cutting in two divisions: fewer than 1,000 corporate employees responsible for store operations and about 250 people in its devices and services unit in the United States, India and the United Kingdom. Netflix announced cuts of about 1,000 people, equivalent to 6% of its global workforce, concentrated in product, technology, legal and human resources. Disney is reportedly planning to lay off thousands of workers to trim 20% of annual costs, though the company has not confirmed the information.
Pressure from AI costs and fears of contagion
Heavier investment in AI and automation is the reason most frequently cited by companies to explain the cuts. Corporations have poured tens of billions of dollars into the technology, while the revenue needed to offset that spending has yet to materialize. Goldman Sachs estimates that costs companies have committed to but not yet reflected on their balance sheets total $3.2 trillion. To balance the books, they are choosing to cut personnel costs and use AI to make up for the lost productivity.
Not every round of layoffs stems from AI, however. Etsy let go of about 220 people, or 12%, purely to streamline its organization. Even the “replace people with AI” strategy does not always go smoothly: some companies, such as Salesforce and Ford, cut jobs citing AI but later had to rehire former staff or recruit new ones.
The bigger worry is the potential for the wave to spread beyond technology. Analysts warn that if job losses spill into retail and finance, another 1.6 million Americans could lose their jobs, pushing the unemployment rate close to recession-era levels. For now, U.S. economy-wide figures remain at their lowest since 2022, and there is no clear sign that layoffs have spread widely outside tech.
On the regulatory side, California Governor Gavin Newsom in June unveiled a tool to track AI’s impact on jobs. Around the same time, more than 4,500 Google employees signed a petition urging the company to take measures to protect workers, such as offering voluntary exit programs before mandatory layoffs and guaranteeing severance packages. In recent weeks, Google has also expanded a voluntary exit program for some staff in five countries.
Political factors could further influence the trend. The 2026 U.S. midterm elections have made AI and data centers a flashpoint in debate, with some candidates campaigning to pause construction of new data centers. Investors worry that new regulations will tighten scrutiny of the tech industry, putting pressure on tech and AI stocks. When markets weaken, companies tend to become more cautious about hiring and investment plans, adding further pressure to cut costs.
Impact on the labor market and investors
For investors, the layoff wave is a double-edged signal. Staff reductions help companies protect profit margins against AI cost pressures, but they also reflect that expected returns from massive investments in computing infrastructure have yet to materialize, raising doubts about the sustainability of the tech stock rally.
For workers, the risk is concentrated among those with less experience. Hiring for roles easily affected by AI has fallen by about a third compared with 2021, narrowing the entry path into the profession for many young people. Lisa Countryman-Quiroz, chief executive of the nonprofit employment support organization JVS Bay Area, said: “It’s unclear whether layoffs will spread to more industries. What worries me is that the path to a stable career is narrowing.” She also proposed that the U.S. Congress increase investment in vocational training, especially in fields that are adding jobs, such as health care, which added 42,000 positions in October alone.
Some companies are trying to maintain amicable relations with departing employees through generous support packages. Canva, for instance, is giving laid-off staff $10,000 in severance, a MacBook, six months of salary and a year of health insurance. For most workers who are not protected by union agreements, this may be seen as the best compensation they can hope for as the labor market deteriorates.