AI-driven tech layoff wave surpasses 150,000 in 2026

The tech industry has accumulated nearly 150,000 layoffs in the first six months of 2026, according to TrueUp, which tracks job losses across the industry. The number is projected to reach 370,000 by year-end — and AI is cited as the primary reason.

The current picture: Over 1.45 million people have been affected by tech layoffs since 2020. In 2026 alone, 143,000 jobs have been cut and counting. TrueUp projects 370,000 tech layoffs by December.

Why companies are cutting: Executives say they need to reduce payroll to fund AI spending plans, including investments in chips, data centers, and model training. Amazon, Meta, Google, and Microsoft together plan to spend hundreds of billions on AI infrastructure in the coming year.

Notable cases:

• Cisco eliminated nearly 4,000 positions citing AI investment
• Amazon laid off 16,000 in January, months after a 14,000-person reduction
• Pinterest cut 15% of its staff amid AI restructuring
• Meta, Salesforce, Oracle, Autodesk, and Ericsson also reduced headcount

Some companies claim AI tools allow them to do more with fewer people, improving software engineering, customer service, and operations. Meanwhile, economists warn that the effects of AI on jobs are inconsistent and difficult to measure.

Source: Yahoo Finance/ExtremeTech