The global technology sector continues to experience significant workforce reductions as companies adapt to artificial intelligence transformation. According to independent layoffs tracker Layoffs.fyi, over 35,000 tech employees have been laid off by 50 tech companies so far this year, as reported by Mint. These figures, based on data available up to 28 February, follow a challenging 2025 that saw more than 120,000 tech workers lose their jobs across the industry. The ongoing job cuts reflect companies' efforts to manage expenses while shifting investments toward AI and automation initiatives. Latest data from outplacement firm Challenger, Gray & Christmas shows U.S.-based tech employers announced more than 33,000 job cuts from January to February, representing a 51% increase compared with the same period last year. However, recent data shows some improvement, with U.S.-based employers announcing 48,307 job cuts in February, a 55% drop from January levels, according to Challenger, Gray & Christmas.
Several prominent technology companies have announced substantial workforce reductions this year. Oracle is preparing to lay off thousands of employees across several divisions, with job cuts potentially beginning as soon as this month, according to a Bloomberg report. The cuts are reportedly part of efforts to manage a cash crunch linked to Oracle's massive spending on AI data centres. Block is implementing an overhaul to embrace AI across its operations, with over 4,000 employees being let go to embed intelligence tools, as announced by Jack Dorsey in a shareholder letter. The fintech company recently announced it is cutting more than 4,000 workers or nearly half of its workforce, blaming AI disruption for fundamentally changing how the company operates. Amazon laid off 16,000 corporate employees in January as part of efforts to streamline operations amid growing AI competition, marking its second mass layoff since October 2025. The company also announced plans to close all of its brick-and-mortar Amazon Fresh and Amazon Go stores, with plans to convert some locations into Whole Foods.
Nike cut 775 employees in January to boost profit and accelerate automation use, with the layoffs impacting distribution centre roles in Tennessee and Mississippi. Meta eliminated around 10% of employees in its Reality Labs division, which had approximately 15,000 employees prior to the cuts, as the company shifts priorities to build next-generation AI. Salesforce has implemented AI integration, with CEO Marc Benioff stating that AI is doing 30% to 50% of the work at the company, helping to squeeze more profit from fewer people. Technology executives are increasingly praising AI capabilities, with some noting that technology can be more effective than humans in certain areas. According to Mint, Airbnb's CEO Brian Chesky revealed that the company's in-house AI agent now handles about one-third of customer support requests in North America, with expectations that more than 30% of all customer support queries will be handled by AI within a year. Similarly, Spotify's co-CEO Gustav Soderstrom said the company's most experienced developers have not written a single line of code since December due to AI integration in engineering workflow.
The ongoing layoffs have created significant challenges for the tech workforce, with many workers facing extended unemployment periods. According to Layoffs.fyi, close to half of the total layoffs are from Amazon alone, highlighting the concentration of job cuts among major technology companies. Workers who have been laid off report intense competition in a job market flooded with talent from top tech companies, with some unemployed workers having been out of work for more than two years. As one laid-off Salesforce employee noted, the company's shift in focus from employee support to cost-cutting has been particularly difficult for long-time employees who previously valued the company's 'ohana' culture and commitment to employee well-being. Recent economic developments have added to the uncertainty, with weekly filings for first-time jobless benefits remaining at 213,000 during the last week of February, virtually unchanged from the prior week. Continuing claims benefits totaled 1.868 million during the week ending February 21, an increase of 46,000, showing that unemployed workers are taking longer to find new employment.
