Tech layoffs top 40,000 in first 3 months of 2026 as firms reshape workforces for AI

Global technology companies have already laid off more than 40,000 jobs in the first months of 2026, as firms from e-commerce to enterprise software restructure operations amid growing adoption of artificial intelligence (AI).

The cuts underscore how AI-driven productivity gains and shifting business priorities are prompting executives to rethink staffing levels.

Amazon.com Inc. led the reductions earlier this year, announcing plans in January to cut about 16,000 roles across units, including Amazon Web Services, retail operations and advertising. The company also trimmed roughly 100 additional white-collar roles in its robotics division.

Proprietary software maker Atlassian Corp. said on March 12 that it would eliminate about 10% of its workforce, or roughly 1,600 employees, as the company reorganises to accelerate investments in AI and enterprise sales. The layoffs affected staff across North America, Australia and India.

Payments company Block Inc., founded by Jack Dorsey, also announced plans to reduce its workforce by about 4,000 employees as it restructures operations and leans more heavily on AI-driven productivity tools.

Many other firms have also cut jobs this year. Walmart-owned Flipkart Internet asked around 300 employees to exit following its annual performance review process, while telecom equipment maker Telefonaktiebolaget LM Ericsson said in January it would eliminate about 1,600 positions in Sweden as part of a broader cost-reduction effort.

More cuts may be ahead

More layoffs could be on the horizon as companies redirect spending toward AI infrastructure and research.

Facebook and Instagram parent, Meta Platforms, is reportedly planning one of its largest job cuts yet in its Reality Labs division. According to a Reuters report, the company could reduce up to 20% of the unit’s workforce, potentially affecting around 16,000 employees, as it scales back spending on parts of its metaverse effort.

Meanwhile, Oracle Corp. is considering layoffs that could affect tens of thousands of employees as the company ramps up investments in AI-focused data centres; however, the company has not publicly confirmed the plans.