Nearly a third of the current wave of layoffs is due to the direct replacement of tasks through automation, while the rest represents restructuring to fund smart infrastructure.
Article index:
- 128,000 layoffs recorded, surpassing 2025 tally
- Oracle leads cuts with 21,000 jobs
- Amazon, Dell, and Meta continue downsizing workforces
- Uber actions and cancellation of operations in emerging markets
- Indian companies impacted by declining IT hiring
- Redirecting $725 billion toward intelligence infrastructure
- Frequently asked questions
128,000 layoffs recorded, surpassing 2025 tally
The global tech industry laid off a number of employees and engineers in the first nine months of 2026 that surpasses what it lost throughout the entire year of 2025. Major global companies from Oracle to Amazon are undertaking a radical restructuring of their workforces to fund a comprehensive transformation and intensive spending on artificial intelligence infrastructure and data centers.
Accurate data issued by the specialized tracking platform Layoffs.fyi shows that 128,536 tech employees across 299 companies were let go by September 10 of this year, exceeding the total annual tally for 2025 of 122,606 employees across 278 companies. The pace of cuts accelerated noticeably in early September with the elimination of more than 6,300 jobs during the first ten days alone, reflecting a profound structural shift in the digital labor market.
Oracle leads cuts with 21,000 jobs
Oracle topped the list of companies with the largest job cuts, eliminating 21,000 jobs—equivalent to about 13 percent of its total workforce—according to its annual report filed with the U.S. Securities and Exchange Commission for its 2026 fiscal year.
The company explicitly attributed this sharp reduction to “integrating and using artificial intelligence technologies across our various operational processes,” according to reports by CNBC and Quartz, in a restructuring move that cost the company $1.8 billion in severance and termination expenses to achieve higher operational efficiency.
Amazon, Dell, and Meta continue downsizing workforces
Amazon ranked second after laying off 17,267 employees across five consecutive rounds affecting various cloud and logistics departments, followed by Dell, which eliminated 11,000 jobs last March. Meta cut 10,400 employees across four separate rounds, which included a major round involving 8,000 employees in May focused on removing redundant management layers.
Microsoft also proceeded with laying off 4,800 employees, and PayPal let go of 4,760 employees as part of a corrective plan aimed at saving $400 million by the end of the current fiscal year to focus cash liquidity on promising strategic projects and supercomputing accelerators.
Uber actions and cancellation of operations in emerging markets
Uber joined the layoff trend in September by announcing the departure of about 3,300 employees, representing 10 percent of its staff, in the largest reduction the company has seen since the coronavirus pandemic. CEO Dara Khosrowshahi informed employees of a 20 percent reduction in management ranks, the flattening of administrative structures, and the redirection of savings toward growth, according to The New York Times.
These reductions coincided with Uber’s decision to permanently halt its operations in Nigeria and Uganda as part of efforts to rationalize expenses and improve operational profitability, according to Al Jazeera.
Indian companies impacted by declining IT hiring
This global wave hit India’s tech sector hard, as multinational companies such as PayPal and Oracle trimmed engineering and operations teams in their overseas branches in India, leading to the elimination of between 10,000 and 15,000 jobs locally.
This coincided with a decline in net hiring among Indian IT giants; Tata Consultancy Services recorded a net drop of over 23,000 employees, while Wipro and Tech Mahindra lowered their campus hiring targets, putting job losses in India alone between 25,000 and 35,000.
Redirecting $725 billion toward intelligence infrastructure
Employment experts explain that artificial intelligence is a contributing factor but not the sole driver. Chetan Mangalwede, CEO of TalentifyX, stated that “between a quarter and a third of this wave represents a genuine replacement of tasks through automation, while the rest represents cost readjustment.”
Major tech companies are expected to spend about $725 billion on capital expenditures in 2026, an increase of 77 percent over 2025, as data centers and artificial intelligence accelerators swallow the lion’s share of this liquidity at the expense of human jobs.
Frequently asked questions
Question: How many employees have been laid off in the tech sector during 2026 so far?
Answer: The number of laid-off workers reached 128,536 employees across 299 companies, surpassing the total number of layoffs for the entirety of 2025.
Question: Which tech company recorded the highest number of layoffs this year?
Answer: Oracle topped the list by laying off 21,000 employees, making up about 13 percent of its workforce, to fund intelligence investments.
Question: What is the expected volume of capital spending for major tech companies in 2026?
Answer: Spending is expected to reach $725 billion, a 77 percent increase, with the majority concentrated in servers and artificial intelligence infrastructure.
