Just weeks into 2026, the global technology sector is already shedding jobs at a pace that could eclipse last year’s total.
More than 30 000 tech employees have been laid off worldwide since January, according to data compiled by forex trading firm RationalFX. The firm’s analysis suggests the industry is on track to surpass 2025’s job-cut figure (245 000) if the current trajectory continues.
Drawing on figures from several sources, including TrueUp and TechCrunch, as well as multiple US state databases, RationalFX identified 30 700 job cuts announced globally in just over a month. Of these, 24 600 – just over 80% − occurred in the US.
The reductions span 38 US-based companies, with the largest cuts coming from e-commerce and cloud giant Amazon, Meta and fintech group Block.
RationalFX notes that an unusual entry among the countries most affected this year is the British Virgin Islands, following 60 job cuts at blockchain platform Polygon. The move places the small archipelago among the global top 10 countries for tech layoffs so far in 2026.
Alan Cohen, data analyst at RationalFX, tells ITWeb via e-mail that the cuts reflect a structural shift in the sector following years of aggressive expansion.
“Many tech giants over-expanded during the pandemic, building layers of management, corporate functions and operational complexity. Now, with tighter margins and a shift from headcount-driven growth to profitability, companies are streamlining.
“Amazon’s 16 000 cuts in January, over half of the 30 700 we’ve tracked so far, are a prime example. Despite record revenues, the company is trimming layers to operate leaner and faster. Similar patterns can be seen at Ericsson (1 600 layoffs in Sweden), Meta (Reality Labs reductions) and Salesforce, where high fixed costs meet efficiency drives and resources are redirected toward higher-margin or next-generation tech areas.”
Impact of
Cohen says artificial intelligence (AI) is accelerating the trend, although it is not the primary driver. In 2025, roughly 28.5% of tech layoffs – 69 840 roles – were linked to AI adoption and automation.
“We’ve already seen at least 1 430 AI-related cuts in 2026, including Pinterest’s 675 layoffs as part of an AI pivot.”
He adds that executives such as Amazon CEO Andy Jassy have been clear that AI is enabling faster innovation and efficiency, prompting companies to restructure in anticipation of future productivity gains.
According to Cohen, many of the reductions are tied to broader strategic shifts, including renewed focus on core products, reallocating resources to cloud and AI infrastructure, and funding large-scale investments in data centres and next-generation technologies.
“The first six weeks already saw 30 700 cuts, putting 2026 on track to surpass 2025’s 245 000 if current momentum continues,” he says.
“Expect ongoing optimisation, particularly as companies rebalance workforces toward AI, cloud and digital skills. Europe (Sweden’s Ericsson, the Netherlands’ ASML) is following similar patterns, though US firms still dominate in scale. The key wildcard: if AI delivers rapid productivity gains, further reductions could follow; if not, we may see stabilisation or even selective rehiring as companies adjust to the new technological frontier.”
In Europe, Sweden leads job losses after telecommunications equipment maker Ericsson announced 1 900 layoffs. The Netherlands follows, with semiconductor equipment manufacturer ASML cutting 1 700 positions.
In Asia, India tops the regional list with 900 job cuts so far this year, followed by Israel with 774 announced layoffs. RationalFX notes that other major technology hubs – including Japan, Indonesia and China – have not reported layoffs in 2026 to date, although reporting from China is often limited and difficult to verify.
After cutting nearly 20 000 roles in 2025, Amazon has announced a further 16 000 job reductions this year – one of the largest single workforce cuts in its history. The company previously reduced headcount by 14 000 in October 2025. Management has cited efforts to streamline reporting structures, accelerate decision-making and boost efficiency.
“Yet these cuts come amid record revenue of $716.9 billion in 2025 (up 12% year-on-year, with explosive AWS growth) and massive ongoing investments in artificial intelligence and cloud infrastructure, including a projected $200 billion in capital expenditure for 2026 alone,” says Cohen.
Meta cut approximately 1 500 jobs in early 2026, affecting 10% of its Reality Labs division, which develops virtual reality headsets, Horizon Worlds and other metaverse-related products.
“This is the first major workforce reduction at Meta this year and comes as the company pivots away from costly metaverse investments toward higher-priority areas like artificial intelligence, following years of heavy losses in Reality Labs,” Cohen notes.
“Meta executives, including CTO Andrew Bosworth, have framed the layoffs as part of a broader effort to streamline operations and reallocate capital to products with stronger market traction, even as the company continues to back long-term augmented-reality ambitions.”
Restructuring drive
Block, parent company of payment platforms Square and Cash App, has announced plans to cut about 1 100 jobs − roughly 10% of its global workforce − as part of a restructuring drive.
“Led by co-founder Jack Dorsey, the company says the reductions, tied to annual performance reviews and strategic realignment, are intended to flatten management layers, eliminate overlapping roles, and improve operational efficiency as it continues to integrate its core services and invest in emerging areas such as Bitcoin-related products and internal AI tools,” Cohen explains.
“This marks Block’s third major round of job cuts in recent years, following roughly 931 redundancies in 2025 and a similar reduction in 2024, highlighting the company’s continued drive to reduce costs as competition in the industry intensifies.”
Enterprise software groups Autodesk and Salesforce each announced roughly 1 000 job cuts in early 2026. RationalFX says Autodesk is trimming roles in product development and corporate functions to streamline operations and accelerate investment in its cloud-based design platforms. Salesforce is reducing headcount across sales, marketing and support to simplify its organisational structure after rapid pandemic-era growth.
“Together, these reductions highlight how even established software leaders are balancing continued investment in high-demand products with the need to control costs and maintain profitability in a challenging enterprise technology landscape,” Cohen notes.
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