Tech Layoffs Continue at Multiple Firms
A recent wave of layoffs has impacted several technology companies, including crypto exchange Kraken, fashion e-commerce firm Myntra, and IT services giant Infosys. The workforce reductions are often framed as part of restructuring efforts aimed at increasing efficiency, sometimes driven by AI. Kraken's layoffs come ahead of a potential IPO, while construction tech firm Icon Technologies also reduced its staff by 25%.
- The wave of layoffs in early 2026 is part of a significant global trend, with over 30,700 tech jobs cut worldwide in the first six weeks of the year alone, a pace that could surpass 2025's total of 245,000. - Myntra's reduction of approximately 50 employees was not driven by performance or AI, but by a strategic decision to consolidate its Gurugram-based catalogue operations into its main Bengaluru headquarters to improve collaboration. - The layoffs at construction-tech firm Icon involved 114 employees, or 25% of its workforce, as the company—valued at nearly $2 billion in its last funding round—realigns to focus on key sectors like residential and defense projects. - In the crypto sector, Gemini, a competitor in prediction markets, laid off up to 25% of its staff in February 2026 as it announced its exit from the UK and European markets to concentrate on its US operations. - The European tech hiring market has stabilized with a 29% hiring rate, showing cautious but steady growth after a previous decline. There is now a premium on "delivery-capable" engineers who can deploy and maintain systems under new EU regulations like the AI Act. - The broader trend of workforce reduction is often tied to strategic pivots toward AI; in 2025, an estimated 28.5% of tech layoffs were linked to AI adoption and automation as companies restructure to prioritize these skills. - While some roles are eliminated, AI is also reshaping the job market by creating new positions for engineers who can manage, train, and interpret the outputs of AI systems. - The layoffs at Infosys primarily involved hundreds of trainees who failed to clear internal performance assessments, a recurring process, while the company still plans to hire 20,000 freshers in the 2025-2026 fiscal year.
