Tech Layoffs Continue in 2026

The tech sector's downturn isn't new; 2025 saw nearly 245,000 job cuts, with U.S.-based companies accounting for 70% of those. AI's rise contributed to approximately 55,000 of those layoffs in the US alone. Several major companies have already announced significant layoffs in 2026. Oracle is considering slashing 20,000 to 30,000 jobs, while Amazon is cutting around 16,000 corporate roles globally. Ericsson plans to reduce its workforce in Sweden by 1,600. AI isn't the only factor; macroeconomic trends and geopolitical uncertainty also play a role. Some companies are restructuring to focus on AI development, even while posting record revenues. Certain roles are more vulnerable. Computer programmers, customer service representatives, and data entry keyers are among the most exposed occupations. However, new roles like AI ethicists and prompt engineers are also emerging. The rise of AI agents and autonomous systems is becoming a universal trend. Companies are shifting towards smaller teams with greater operational capacity, coordinating humans, AI agents, robots, and autonomous systems. This trend is prompting some to reconsider their career paths. Some students are moving away from computer science, while others are embracing AI and focusing on "human skills". Despite the layoffs, some IT/CX leaders believe AI is creating more jobs than it's eliminating. Many companies emphasize "AI plus human," but AI is undeniably replacing some employees. If the current pace continues, job cuts in 2026 could surpass 2025's total, potentially reaching 264,730 by year-end. Roughly 20% of layoffs this year are linked to AI implementation.