The global technology sector has cut 59,121 jobs in the first months of 2026, according to layoff tracker TrueUp, as companies including Amazon, Meta, Block and Atlassian restructure workforces and redirect spending toward artificial intelligence, even as revenues remain strong.
The scale and speed of the reductions mark an acceleration from last year. TrueUp recorded 171 layoff events since January, averaging 704 job losses per day. At that pace, total cuts could reach 265,000 by year-end, surpassing the 245,953 layoffs recorded across all of 2025.
The shift is notable not only for its size but for its stated rationale. Executives are increasingly framing workforce reductions as a strategic response to AI adoption rather than cyclical cost-cutting. At several firms, layoffs are occurring alongside record revenues and rising capital expenditure.
Amazon leads the current wave, with roughly 16,000 positions eliminated so far in 2026. The company reported $716.9 billion in revenue in 2025, a record, but said the cuts are aimed at flattening management layers and accelerating decision-making. The approach reflects a broader effort to streamline operations as automation tools take on a larger role.
Block, the fintech company behind Square and Cash App, has taken a more explicit stance. Chief Executive Jack Dorsey wrote in a company-wide memo: "This is not driven by financial difficulty, but by the growing capability of AI tools to perform a wider range of tasks." The company cut 4,000 roles, nearly 40% of its workforce, making it one of the most aggressive restructurings of the year.
Atlassian followed with 1,600 layoffs, or about 10% of its global workforce, despite strong performance in its cloud business. Co-founder Mike Cannon-Brookes said the move would "self-fund further investment in AI and enterprise sales," signaling how savings from job reductions are being redirected into new technology initiatives.
Data from UK-based research firm RationalFX indicates that at least 9,200 of the job cuts in 2026 are directly tied to AI adoption, representing roughly one in five layoffs so far this year. Companies are not only reducing headcount but redesigning workflows around AI-assisted systems, often eliminating entire functions.
Meta is also deepening its restructuring. The company has already cut about 1,500 jobs in its Reality Labs division and is reportedly preparing further reductions that could affect up to 15,000 workers, or roughly 20% of its workforce. At the same time, it is planning as much as $135 billion in AI capital expenditure in 2026, nearly double its 2025 spending.
The impact is spreading beyond traditional technology firms:
- CBS News cut 6% of its workforce and shut down its radio division on March 20.
- Ingka Group, IKEA's largest retailer, announced 800 office job cuts across 32 markets.
- Ericsson reduced 1,900 roles, ASML cut 1,700, and eBay eliminated 800 positions despite reporting $3 billion in quarterly revenue.
A Resume.org survey of 1,000 U.S. hiring managers found 55% expect layoffs at their companies this year, with 44% citing AI as a primary driver. The pattern is becoming standardized: companies invest in AI, assess which roles can be automated, and then restructure accordingly.
Alan Cohen, an analyst at RationalFX, said trends from 2025 have "continued full steam into 2026," with organizations shifting toward leaner, AI-driven models. Venture capitalists focused on enterprise technology have similarly warned that 2026 could mark the point at which AI begins to take a "meaningful toll on labour," as automation moves from augmentation to replacement.
