Tech Layoffs Outpace 2025 As Big Companies Shift Spending To AI
From January through August, U.S. tech layoffs reached at least 94,046, up 16.8% from 80,486 in the same period of 2025. Interestingly, and unsurprisingly, many of the cuts came as tech companies redirected spending toward AI and restructured operations to reduce costs.
In 2026, tech layoffs are accelerating compared to the previous year, with a surge in job cuts as companies pivot spending towards artificial intelligence (AI). According to Crunchbase’s Tech Layoff Tracker, U.S. tech employers eliminated at least 94,046 jobs from January to August 2026, a 16.8% increase from 80,486 layoffs in the same period last year.
The layoffs are not consistent but occur in sharp bursts, with a significant uptick in January and a peak in May. May saw the highest monthly layoffs since March 2023, with Meta announcing a 8,000-worker reduction, accounting for the largest single-month layoff in the past three years. However, after May, layoffs have generally decreased, ending August with 2,347 job cuts.
The year-to-date global layoffs, as per Layoffs.fyi, have reached 92,913, with AI cited in 33% of these events, a notable rise from just 1% in 2024. AI-attributed layoffs, totaling 92,913, make up 72% of the year’s layoffs globally. Established tech companies, particularly Big Tech and publicly traded firms, dominate the layoff landscape, with Amazon and Meta leading the pack.
Amazon alone has laid off 17,388 employees, including a 16,000-person reduction in January and smaller subsequent cuts. Meta's layoffs, including an 8,000-worker reduction in May, represent 10% of its workforce. Other notable layoff totals include Microsoft (4,800), PayPal (4,760), and Block, Cisco, and Cognizant each reporting 4,000 layoffs.
While AI is becoming a more frequent reason for layoffs, Challenger, Gray & Christmas founder Andrew Challenger explains that AI is replacing some work, such as coding, and prompting companies to prioritize AI spending while cutting costs elsewhere. This explains why companies may lay off some employees while simultaneously hiring for AI-focused roles.
Challenger also notes that while layoffs remain elevated compared to pre-pandemic levels, they are not as severe and that there could be upside for programmers as AI may make software cheaper to build and potentially create new jobs outside of tech.
Written by urgent.news from Crunchbase News's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
