Technology companies have eliminated more jobs in the first seven months of 2026 than during all of last year, extending a restructuring wave that is increasingly hitting workers even as some of the industry's largest employers report rising revenue and invest heavily in artificial intelligence.
Layoffs.fyi recorded 125,759 technology job losses across 264 companies between Jan. 1 and Aug. 6, already exceeding the 122,606 layoffs reported at 278 employers during all of 2025. The tracker counted 152,922 job losses in 2024.
The figures point to a shift in the character of the industry's retrenchment. Fewer companies have announced layoffs this year than during the comparable full-year totals, but individual reductions are getting larger, with an average of about 476 jobs eliminated per company in 2026, compared with 441 last year.
If layoffs continue at roughly their current pace, the technology sector would approach 210,000 job cuts by the end of December. TrueUp, which uses a broader methodology that includes startups and non-U.S. companies, paints an even sharper picture: 520 layoff events affecting 174,721 workers so far this year, equivalent to about 787 job losses a day, compared with 674 a day in 2025.
Oracle stands out among the industry's biggest workforce reductions. The software company's annual report, filed June 23, showed its headcount had fallen by roughly 21,000 employees over its financial year, equivalent to nearly 13% of its workforce.
Oracle explicitly connected the changing workforce to artificial intelligence. The company told investors that adoption of AI throughout its operations had "resulted, and may continue to result, in reductions to our workforce."
The reductions illustrate how the latest technology downsizing differs from the post-pandemic correction that followed aggressive hiring earlier in the decade. Companies are now simultaneously cutting established positions, reorganizing operations and directing billions of dollars toward AI infrastructure and products.
August brought another cluster of reductions. Zillow said Aug. 4 that slightly more than 500 employees would leave, representing about 7% of the 7,058 workers it employed at the end of March.
"These changes are about ensuring we have a disciplined cost structure and getting more efficient, with the right people in the right positions," Zillow Chief Executive Jeremy Wacksman wrote.
The restructuring comes with substantial upfront costs. Zillow recorded a $36 million restructuring charge during the second quarter and expects another $23 million to $28 million during the third quarter, bringing anticipated charges to between $59 million and $64 million.
Those expenses helped push Zillow to a $4 million quarterly net loss even as revenue increased 18% to $772 million and adjusted earnings before interest, taxes, depreciation and amortization reached $176 million. Chief Operating and Financial Officer Jeremy Hofmann told analysts the reductions are expected to generate approximately $75 million in annualized savings.
Etsy followed with about 220 job cuts announced Aug. 5, representing nearly 12% of its workforce. The online marketplace reported second-quarter revenue of $668.3 million, an increase of 6.2% from a year earlier.
Chief Executive Kruti Patel Goyal rejected the idea that either AI or a straightforward cost-cutting exercise was behind the restructuring.
"First, our goal wasn't to cut costs," Goyal wrote, describing lower expenses as an outcome rather than the purpose of the changes. She added: "Second, these decisions weren't driven by AI."
Etsy's departing employees will receive at least 16 weeks of severance, with additional compensation based on tenure. The package also includes as much as 12 months of healthcare support, compensation covering 2026 incentive pay and near-term equity vesting, and payment for unused leave.
Other technology companies have continued reducing headcount in smaller rounds. TikTok eliminated 250 jobs on Aug. 5 as it closed its content-moderation operation in Nashville. A spokesperson said the company was acting to "streamline our operations and better align our teams for long-term growth."
Google filed a Worker Adjustment and Retraining Notification in Washington state the same day covering 52 employees in Kirkland, Redmond and Seattle, with the reductions scheduled to take effect Oct. 5.
Salesforce followed Aug. 6 with another 74 positions eliminated in San Francisco and 59 across Seattle and Bellevue.
For workers, the financial consequences vary sharply by jurisdiction and employer. U.S. severance arrangements generally depend on company policies and employment agreements, producing packages such as Etsy's that can provide months of compensation and benefits.
British employees operate under a statutory redundancy system. For dismissals beginning April 6, 2026, weekly pay used to calculate statutory redundancy is capped at £751 regardless of an employee's actual salary, according to GOV.UK, while qualifying service is capped at 20 years.
Acas places the maximum statutory redundancy payment at £22,530, and workers generally need at least two years of continuous employment to qualify. A 35-year-old employee earning £80,000 annually with five years of qualifying service, for example, would receive five weeks calculated at the £751 cap, producing a statutory payment of £3,755 unless the employer offers enhanced terms.
Redundancy payments of as much as £30,000 can generally be received free of income tax in the U.K., while payments made instead of contractual notice are treated as taxable earnings.
