JUST over three months into 2026, the global technology sector is already showing signs that workforce reductions are not slowing down, according to a report released March 9 by RationalFX, a London-based foreign exchange and financial research firm.
Roughly 45,363 tech employees have been laid off worldwide since January, placing the industry on a trajectory that could easily surpass last year’s totals if the current pace continues, the report said.
The wave of redundancies follows several years of post-pandemic correction, during which nearly a million tech jobs were eliminated globally. What began as a pullback from pandemic-era overexpansion has evolved into a structural shift in how technology companies operate. In 2025, automation, artificial intelligence integration and sustained cost-discipline measures drove much of the downsizing, with entire departments restructured or eliminated in favor of leaner, AI-assisted workflows.
This trend has continued into 2026. To better understand it, the team at RationalFX investigated the wave of layoffs in the technology sector, analyzing the number of job cuts that have occurred throughout the year. The analysis draws on figures from several sources, including TrueUp, TechCrunch and multiple state WARN databases.
Countries most affected
Since the start of the year, tech companies have announced 45,363 job cuts worldwide, with 30,846 — roughly 68 percent of the global total — occurring in the United States. These reductions span 43 US-based companies, with the largest cuts coming from e-commerce and technology giant Amazon, Mark Zuckerberg’s Meta and fintech and payments provider Block.
Australia has seen 2,650 layoffs so far in 2026, stemming from just two companies: Sydney-based WiseTech Global, which cut 2,000 jobs, and Melbourne telecommunications firm Telstra, with 650 roles affected since the start of the year.
While the overall scale of layoffs in Australia does not match that of the United States, the concentration of cuts within a small number of major firms highlights a significant regional impact.
Europe accounts for a smaller but notable share of layoffs, with Sweden (1,923), the Netherlands (1,700), the United Kingdom (1,000), the Czech Republic (250) and Germany (200) among the most affected countries. The region’s layoffs are concentrated in telecommunications, semiconductor and gaming sectors.
Asia has seen 4,595 layoffs across several countries, with the largest numbers coming from Israel (1,539), India (1,520) and Singapore (1,016). The cuts span artificial intelligence startups, e-commerce platforms, cybersecurity firms and electric mobility companies.
Amazon leads
tech layoffs
After cutting nearly 20,000 roles in 2025 — the second-largest total among tech companies that year — Amazon has announced a further 16,000 job reductions in 2026, one of the largest single workforce cuts in its history. The move follows 14,000 redundancies announced in October 2025.
Company management cited efforts to streamline reporting, accelerate decision-making and boost efficiency.
The cuts come despite strong financial performance. Amazon reported revenue of $716.9 billion in 2025, up 12 percent year on year, with continued growth in its cloud-computing division.
Financial technology company Block Inc. has also announced plans to cut 4,000 jobs in 2026 as part of a restructuring aimed at flattening management structures and eliminating overlapping roles.
Semiconductor and sensor manufacturer ams Osram plans to eliminate around 2,000 jobs as part of a restructuring program intended to improve profitability amid weaker demand in parts of the semiconductor market.
Australia’s largest technology layoffs come from logistics software developer WiseTech Global, which confirmed 2,000 layoffs as part of a restructuring.
Sweden-based telecommunications equipment maker Ericsson has also announced plans to cut approximately 1,900 jobs, including around 1,600 positions in Sweden, as part of cost-efficiency measures.
Dutch semiconductor equipment manufacturer ASML said it would cut around 1,700 jobs — about 4 percent of its global workforce — primarily in management, technology and IT roles.
Meta has also cut approximately 1,500 jobs in early 2026, affecting about 10 percent of its Reality Labs division, which develops virtual-reality headsets and metaverse-related products.
AI layoffs intensify in 2026
Artificial intelligence and automation are increasingly cited as factors behind workforce reductions across the technology sector.
In total, 9,238 layoffs in 2026 so far have been linked directly to AI adoption, automation or organizational restructuring tied to these technologies, according to the RationalFX report.
Companies implementing layoffs often describe the reductions as part of broader shifts toward AI-assisted operations, where automated systems allow smaller teams to manage certain tasks.
Block’s 4,000 layoffs represent the largest workforce reduction tied to such restructuring this year. WiseTech Global follows with 2,000 layoffs after announcing plans to increase automation across its logistics platforms.
Other companies have reported smaller reductions linked to similar transitions. E-commerce platform eBay has cut 800 roles, while Pinterest eliminated 675 jobs while increasing investment in AI-powered advertising and content-discovery tools.
Singapore-based home design platform Livspace has also reduced about 1,000 positions as it transitions toward automated design and operations systems.
Cities most affected
Several major technology hubs have emerged as focal points of layoffs in 2026.
Seattle tops the list with 16,590 employees affected worldwide, reflecting layoffs at companies headquartered there, including Amazon and Microsoft.
San Francisco follows with 9,395 layoffs, while Menlo Park — home to Meta Platforms — recorded about 1,500 job cuts.
Outside the United States, Sydney ranks among the cities most affected after WiseTech Global announced its restructuring program.
In Europe, Stockholm, Veldhoven in the Netherlands and Premstätten in Austria have also seen notable job losses linked to major technology firms headquartered there.
Outlook for tech sector
The technology sector continues to navigate the aftermath of the Covid-19 pandemic, which has affected more than a million tech employees worldwide since 2021.
Based on current trends, the RationalFX report estimates that global layoffs could reach 264,730 by the end of 2026, surpassing the roughly 245,000 job cuts recorded in 2025.
Artificial intelligence integration remains a major factor behind the restructuring. Companies are increasingly reorganizing teams and workflows around AI-assisted systems, often reducing headcount where tasks can be automated or handled more efficiently with new tools.
Earlier rounds of layoffs largely affected operational and support roles, but recent reductions indicate that more specialized and senior positions are also being impacted.
Some companies have attempted to soften the impact through reskilling programs and internal redeployment, but industry leaders say the pace of technological change continues to challenge these efforts.
