Tech Layoffs Outpace 2025 As Companies Shift Spending to AI
Tech layoffs in the U.S. during early 2026 have outpaced last year's pace. Major companies are redirecting spending towards artificial intelligence and streamlining operations.
U.S. tech layoffs in early 2026 have accelerated compared to the previous year, occurring in sharp bursts rather than a steady stream. From January through August, at least 94,046 jobs were cut in the tech sector, an increase of 16.8% from the same period in 2025.
Many companies have redirected their spending towards artificial intelligence and restructured operations to reduce costs. The year began with significant job cuts, exceeding 20,000 in January alone. May was particularly severe, recording 31,513 layoffs, including Meta's reduction of 8,000 employees, the highest monthly count since March 2023.
Recent months, however, indicate a slowdown. Layoffs decreased monthly after May, reaching 2,347 in August. The total for June-August 2026 was 19,331, a 16.2% year-over-year decrease.
Artificial intelligence has become a prominent reason cited for layoff decisions. AI was mentioned in 33% of tech layoff events in 2026, up from 1% in 2024. Large tech companies, including Amazon and Meta, have led the reductions, with Amazon cutting approximately 17,388 jobs and Meta 10,400.