The global technology sector has recorded at least 30,700 job losses in the opening weeks of 2026, as companies accelerate restructuring plans centred on artificial intelligence and automation, according to a new report by RationalFX.
The report, which aggregates data from multiple layoff trackers and regulatory filings, noted that the early cuts follow a turbulent 2025, when an estimated 245,000 tech workers were laid off worldwide. Analysts warned that if the current pace continues, total job losses in 2026 could exceed 270,000—potentially surpassing last year’s figures.
The United States accounted for the bulk of the layoffs, with about 24,600 roles eliminated so far, representing more than 80 per cent of the global total. Europe followed with over 4,200 job cuts, led by Sweden and Netherlands. Smaller numbers were also recorded in India, Israel, and other markets.
The single largest workforce reduction this year came from Amazon, which announced plans in January to cut around 16,000 corporate roles—more than half of all tech layoffs recorded globally so far in 2026. The move came despite the company reporting record revenue of $716.9 billion in 2025, a 12 per cent year-on-year increase, underscoring analysts’ view that the cuts reflect strategic realignment rather than weak demand.
“Tech’s 2026 layoffs are not a sign of collapse, but recalibration,” said Alan Cohen, an analyst at RationalFX. “Many companies cutting thousands of roles are doing so after posting strong profits. This is about efficiency, not survival. AI has moved from being a growth driver to a cost-reduction tool.”
The report found that at least 1,430 confirmed layoffs in early 2026 were directly linked to AI adoption, continuing a trend from 2025 when nearly 29 per cent of global tech job losses were attributed to automation.
Several major firms have announced workforce reductions as part of broader restructuring efforts. xAI, owned by Elon Musk, confirmed job cuts as it scales operations ahead of a potential public offering. Fintech firm Block, Inc. said it plans to eliminate about 1,100 roles—roughly 10 per cent of its workforce—while increasing investment in AI tools and bitcoin-related products.
Meanwhile, enterprise software companies Autodesk and Salesforce have each announced layoffs of around 1,000 employees, citing the need to simplify organisational structures and rein in costs after rapid expansion during the pandemic.
According to RationalFX, the latest wave of layoffs highlights a broader transformation across the tech industry, as companies move away from headcount-driven growth toward automation-led productivity. Despite the job cuts, analysts say demand for technology services remains strong, suggesting the industry is repositioning rather than entering a downturn.
