Tech Job Cuts Surpass 2025 Levels As Firms Pivot Funds To AI

Tech layoffs in 2026 are outpacing the tempo seen last year, arriving in sharp bursts rather than a steady stream, according to Crunchbase’s Tech Layoff Tracker, which monitors U.S. tech employers cutting jobs.

Between January and August, U.S. tech layoffs reached a minimum of 94,046, marking a 16.8% increase from the 80,486 recorded during the same timeframe in 2025. Unsurprisingly, a significant portion of these cutbacks occurred as tech firms reallocated financial resources toward artificial intelligence and reorganized their operations to lower expenses.

The year kicked off with intense activity on the reduction front. Following a sharp drop in job cuts to 5,151 in December 2025, numbers climbed back past 20,000 in January. May proved especially severe, driving the year-to-date total upward with 31,513 layoffs—including an 8,000-worker reduction at Meta—marking the highest monthly tally since March 2023, when cuts hit 36,602.

Recent months indicate a deceleration. Layoffs decreased month-over-month following May, dropping to 2,347 in August. Combined layoffs from June to August 2026 totaled 19,331, representing a 16.2% decrease year over year. While this points to recent easing, experts note it remains premature to declare a permanent reversal.

Artificial intelligence has surfaced as a frequent justification for staff reductions, according to Roger Lee, founder of Layoffs.fyi. AI was cited in 33% of tech layoff events this year, a sharp rise from just 1% in 2024. His tracker associates 92,913 global layoffs—accounting for 72% of the year’s total—with artificial intelligence.

“There’s been little evidence that AI is actually replacing the work of the human employees let go,” Lee remarked regarding the largest AI-attributed reductions this year. He suggests that established tech firms are pouring massive investments into AI while trimming budgets elsewhere in hopes of boosting productivity with leaner teams.

Companies cutting

Throughout 2026, major technology corporations, publicly traded entities, and startups alike have executed deep cutbacks.

Mirroring last year’s trends, public tech companies have continued to account for the majority of layoff headlines in 2026, spearheaded by Amazon and Meta.

“Big companies [have] made up about 87% of everyone laid off in 2026, which is similar to last year, when they made up 85%,” Lee stated.

Amazon led with 17,388 total cuts through August, a figure encompassing a 16,000-worker reduction announced in January alongside several smaller subsequent phases. Meta followed with 10,400 layoffs, driven primarily by an 8,000-job reduction in May that claimed 10% of its workforce.

Microsoft and PayPal registered the next-highest totals, eliminating 4,800 and 4,760 positions, respectively. Block, Cisco, and Cognizant each logged 4,000 layoffs, followed by Intuit at 3,000, Amdocs at 2,900, and Visa at 2,600. The top 10 list encompasses diverse sectors, including enterprise technology, social media, payments, and cloud computing.

Additionally, reports indicate Oracle’s workforce shrank by roughly 21,000 employees during its fiscal year ending May 31, 2026. However, because the precise headcounts and exact timelines for those reductions remain unclear, that total was excluded from the tracker.

Among privately held firms in the tracker, Epic Games posted the largest disclosed total at 1,000, succeeded by HR software provider UKG with 950 and MyHeritage with 500. These tallies remained considerably lower than major public firm reductions, though a lack of public disclosure from many private companies restricts direct comparisons.

Furthermore, early September reports indicated that Uber eliminated 3,300 jobs, amounting to 10% of its workforce.

An AI focus

Andrew Challenger of Challenger, Gray & Christmas explains that AI is impacting employment on two fronts. Certain tasks, including programming, can now be executed by fewer individuals. “There are jobs that are literally being replaced by artificial intelligence,” he informed Crunchbase News.

Simultaneously, corporate priorities are shifting. Organizations are channeling increased funding toward AI while defunding divisions dedicated to other business segments. “They’re letting people go from one area of their organization while they might even be hiring in an area that is focused on AI,” Challenger observed, explaining why companies may simultaneously execute layoffs and post new job openings.

Although tech has announced more workforce reductions than any other sector this year, Challenger noted that broader U.S. economy layoffs are slightly lower than last year, though that comparison is influenced by heavy federal job cuts in 2025. Compared to the post-pandemic era when finding labor posed a persistent challenge, current layoff levels remain elevated.

Very few companies outside the tech sector have blamed staff reductions on artificial intelligence thus far, according to Challenger.

Nevertheless, he identifies potential upside for programmers. If artificial intelligence reduces the expense of building software, enterprises in alternative industries might launch digital projects previously deemed unaffordable. This dynamic could stimulate fresh employment opportunities outside the tech sphere, though it remains too early to determine whether those jobs will offset the ones lost.

Meanwhile, indications suggest some organizations may be rethinking their workforce reduction strategies. According to a Business Insider report, Amazon has contacted eligible former employees regarding open positions across the company, including within its cloud-computing and AI divisions.

Methodology

Layoffs figures are from The Crunchbase Tech Layoffs Tracker, where we record reported job cuts at U.S. tech employers. The tracker includes layoffs conducted by U.S.-based companies or those with a strong U.S. presence — both privately and publicly traded — and is updated at least bi-weekly. Layoff and workforce figures are best estimates based on reporting. Actual layoff figures are likely much higher than reported as many companies do not disclose the number of jobs cut when announcing layoffs. For more about our methodology for tracking layoffs, refer to the tracker’s methodology section.

Related reading:

• The Crunchbase Tech Layoffs Tracker

Frequently Asked Questions

Why are tech layoffs higher in 2026 compared to last year?

Tech layoffs from January through August 2026 reached at least 94,046—up 16.8% from the same period in 2025—largely driven by major corporations shifting financial resources toward artificial intelligence and cutting costs in other areas.

Which companies have announced the most layoffs in 2026?

Publicly traded tech companies have accounted for roughly 87% of all layoffs in 2026. Amazon leads with 17,388 cuts through August, followed by Meta with 10,400, Microsoft with 4,800, and PayPal with 4,760.

Is artificial intelligence actually replacing human workers?

According to experts like Roger Lee, there is little evidence that AI is directly substituting the daily labor of all laid-off workers. Instead, established tech companies are investing heavily in AI infrastructure while cutting overall headcount to boost productivity with smaller teams.

How does AI affect hiring and layoffs simultaneously?

According to Andrew Challenger, companies are actively defunding legacy business segments while simultaneously recruiting staff for newly prioritized artificial intelligence divisions, leading to situations where a company cuts jobs in one area while advertising openings in another.

Are layoffs happening outside the tech industry due to AI?

Very few companies outside of the technology sector have attributed their workforce reductions to artificial intelligence so far.

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Illustration: Dom Guzman