Traders are monitoring earnings from tech giants Oracle and Broadcom. — © AFP Prakash MATHEMA
AI-driven disruption across the global tech sector continues. In this context, Snap Inc. becomes the latest company to outsource labor in the name of AI. In light of this development, a new The report examines the rate and impact of layoffs in the technology industry in 2026.
To give a clearer picture of this change, Trading Platforms analyzed layoffs across the tech sector in 2026. Using data from TrueUp, TechCrunch, and multiple state WARN filings, the report identifies the companies behind the largest workforce reductions so far this year, highlighting the most affected regions and companies in the technology industry.
Core data shows that approximately 39,088 job layoffs recorded worldwide since the beginning of 2026 have been directly related to the implementation of AI and automation-led restructuring. The biggest contributor to these reductions is the US tech giant Oracle (25,254 layoffs)Oracle is one of the largest technology companies in the world and provides software and cloud computing infrastructure to other companies.
This restructuring comes as the company aggressively reorganizes around cloud infrastructure and AI-driven enterprise solutions, significantly reducing roles associated with legacy systems and manual processes.
After that, the last company to lay off employees due to AI adoption is Snap, Inc.which cut a thousand positions, expecting $500 million in annual savings by the second half of the year.
Tech companies with the most layoffs due to AI so far in 2026
- The burden – 25,254 layoffs
- Block – 4000 layoffs
- WiseTech Global – 2000 layoffs
- atlasian – 1600 layoffs
- Livespace – 1000 layoffs
- Snap, Inc. – 1000 layoffs
- Meta – 900 layoffs
- eBay – 800 layoffs
- Pinterest – 675 layoffs
- Telstra – 650 layoffs
The most significant workforce reduction in 2026 has come, unsurprisingly, based on the above, from tech giant Oracle, which has cut 25,254 roles as part of a sweeping transformation towards AI-driven cloud infrastructure and enterprise services. The scale of these layoffs reflects a broader shift away from legacy systems, with automation replacing a wide range of administrative, support and technical functions.
After Oracle, Block cut 4,000 positions as CEO Jack Dorsey continues to reposition the company around AI-powered financial tools. Meanwhile, Australia-based WiseTech Global has cut 2,000 roles, with leadership pointing to rapid gains in AI-assisted software development as a key reason for the reduction in engineering headcount.
Not so much a Disney dream
Also, as mentioned earlier, one of the most recent examples of AI-driven restructuring comes from Snap Inc., which has announced 1,000 layoffs as it accelerates its investments in artificial intelligence across its platform. The company behind Snapchat is increasingly focusing on AI-powered content creation, augmented reality and advertising solutions, reducing the need for large operational and support teams. The move reflects a growing trend among social media platforms where automation is reshaping core functions and redefining workforce needs.
Global tech layoffs in 2026 have now reached 84,223 following the latest round of cuts at The Walt Disney Company, which is expected to implement about 1,000 layoffs as part of ongoing restructuring efforts. These reductions reflect a broader industry trend in which companies are streamlining operations, consolidating business units and increasing investments in automation and digital technology.
The US leads in tech layoffs
The United States accounts for the vast majority of AI-related tech cuts in 2026, with 65,357 roles cut so far, reflecting the country’s dominant position in the global tech sector. The United States is followed by Australia (4,450 layoffs) and India (2,057 layoffs), where companies are also accelerating automation efforts in software development and digital services. In Europe, Austria (2,000 layoffs), Sweden (1,938 layoffs), and the Netherlands (1,700 layoffs) all recorded notable workforce reductions, while Israel (1,609 layoffs) and Singapore (1,196 layoffs) highlight the growing impact of global AI restructuring.
Cloud computing is the most difficult, followed by software-as-a-service
Cloud and SaaS remain the hardest-hit technology sectors in 2026, accounting for 28,440 layoffs, largely driven by large-scale restructuring at Oracle affecting 25,254 employees worldwide. E-commerce and marketplaces followed with 19,569 layoffs, heavily impacted by Amazon’s reduction of 16,000 roles.
Social media platforms have laid off 4,097 employees since January, with the latest round coming from Snap Inc as the company continues to scale back operations as part of its first AI transition. Blockchain and crypto layoffs are also on the rise as StarkWare cut roughly 70 employees following a sharp decline in revenue.
Amazon, Meta, Google and Microsoft alone are expected to invest a total of $650 billion in AI infrastructure this year, and that money has to come from somewhere. Payroll is one of the highest controllable costs on the balance sheet. But that’s only half the story. As OpenAI CEO Sam Altman himself acknowledged, there is an element of “AI-washing,” companies attributing to AI what are sometimes poor business decisions or long-overdue entitlements after pandemic-era overemployment.
The real picture is more nuanced: AI has fundamentally fragmented the job market, creating premium demand for senior engineers who can work alongside AI tools while simultaneously replacing new and mid-skill roles. As for what comes next, this is not a temporary hiatus. It’s the start of a structural transformation that will reshape the tech workforce for a generation, and something that should be taken seriously by everyone in the wider tech industry.’
– comments Stanislava Savisheva, analyst at Trading Platforms.
These findings are based on layoff announcements, WARN filings, and independent reports through January 2026. For a deeper look at tech layoffs, the factors driving the job cuts, and our full research methodology, please refer to the full REPORT. The raw data is also accessible on Google Drive below RELATED. It may be used in your own work, provided proper attribution is given with a link to the original source.
