One month into 2026, global tech and startup layoffs near 25,000

Global technology companies and startups cut nearly 25,000 jobs in January, extending a multiyear wave of layoffs into 2026 as firms redirect spending toward artificial intelligence (AI), cloud infrastructure and data centres while trimming costs elsewhere.

According to layoff-tracking website Layoffs.fyi, tech and startup job cuts reached 24,818 across 27 companies worldwide as of January. From big technology companies such as Amazon, Ericsson and Meta to India-based firms including Zupee, the reductions spanned markets and business models, highlighting an industry-wide reset.

Highest tech layoffs in January 2026

Some of the biggest cuts came from Amazon, which laid off about 16,000 employees on January 28, even as the company said it would continue hiring and investing in areas it sees as critical for long-term growth.

Meta announced 1,500 job cuts, about 10% of its Reality Labs division. Telecommunications equipment maker Ericsson said it would eliminate 1,600 roles in Sweden as part of cost-saving measures. Software companies Autodesk and Pinterest each cut close to 1,000 jobs.

Looking ahead, Oracle is said to be planning as many as 30,000 layoffs to help fund expanded data-centre investments, suggesting the trend could persist through the year.

Closer to home, Zupee laid off 200 employees, as the Indian online gaming startup continues to restructure its business following a nationwide ban on real-money gaming. 

Cost pressures and restructuring fuel layoffs

Much of the downsizing reflects a shift in capital allocation as companies pour money into AI. Budgets are being redirected toward AI models, graphics processing units, cloud infrastructure and large-scale data centres.

At the same time, automation tools are replacing some roles, forcing organisations to reshape their workforces. Beyond the AI pivot, layoffs are also being driven by investor pressure to improve cash flow, or by efforts to streamline operations and lift profitability.

Tech layoffs over the years

Recent data shows the peak of job losses came in the first quarter of 2023, when more than 170,000 roles were eliminated. Cuts continued through 2024 and 2025, according to Layoffs.fyi. In April 2025 alone, the industry shed more than 25,000 jobs. 

January 2026 has now marked another painful milestone, deepening anxiety across the sector over what the coming months may bring.