The global technology industry has announced more than 1.63 lakh layoffs since the beginning of 2026, with artificial intelligence (AI) cited as a factor in more than 91,000 job cuts, highlighting the growing impact of AI-led restructuring across the technology sector.
According to a report from TradingPlatforms, global technology companies have announced 1,63,427 layoffs since the start of the year, of which AI has been cited in 91,215 cases. The figures underline how companies are increasingly restructuring their workforces as they redirect investment towards AI, automation and new technology platforms.
The latest Layoff wave has affected multiple technology segments, including cloud and software-as-a-service (SaaS), e-commerce, IT services, social media and enterprise software. While the scale of job reductions varies across regions and companies, the trend points towards a significant transformation in the way technology companies allocate capital and organise their workforces.
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Enterprise Software Emerges as a Major Layoff-Heavy Tech Segment
Enterprise software accounted for approximately 8.14 per cent of total technology job cuts recorded globally in 2026, making it the fifth-most affected technology subsector, according to the TradingPlatforms report.
The report recorded 13,308 enterprise software layoffs globally.
The sector was surpassed by several other major technology segments. Cloud and SaaS companies accounted for 37,492 layoffs, followed by e-commerce and marketplaces with 22,633, IT services with 16,756, and social media companies with 13,592 job cuts.
The figures demonstrate that the Layoff trend is not limited to a single category of technology companies. Instead, organisations across the technology ecosystem are reassessing staffing levels, operating costs and business priorities.
The increasing adoption of AI appears to be one of the central factors behind this restructuring, particularly as companies seek to invest heavily in AI infrastructure, products and services.
US Companies Account for Majority of Enterprise Software Cuts
The United States has emerged as the largest centre for enterprise software layoffs in 2026.
Nearly 88.6 per cent of enterprise software layoffs recorded this year occurred at US-based companies, with 11,792 of the 13,308 global enterprise software job cuts coming from US firms.
The concentration reflects the size of the US technology industry and the large number of enterprise software companies headquartered in the country.
Among US-based enterprise software companies, Cisco recorded the largest number of announced job cuts, with approximately 4,000 positions affected.
Cisco was followed by Amdocs, which announced around 2,900 job cuts, while Autodesk recorded approximately 1,000 positions being eliminated.
The scale of these workforce reductions indicates that restructuring is affecting established technology companies as well as newer businesses.
Cisco Links Restructuring Costs to AI Strategy
Cisco’s workforce reduction has attracted particular attention because the company has linked the restructuring to its broader AI strategy.
The company said approximately $1 billion in restructuring costs associated with its workforce reductions would support its AI strategy.
This reflects a broader pattern emerging across the technology industry: companies are increasingly reallocating resources away from traditional areas and towards AI-related technologies.
For businesses, the shift can involve significant upfront costs. AI development requires investment in computing infrastructure, software, data, specialised talent and product development. Companies may therefore seek to offset some of those costs by reducing spending in other parts of their operations.
The result is a complicated labour-market dynamic in which investment in one area of technology can coincide with employment reductions elsewhere within the same company.
Oracle Records the Largest Overall Workforce Reduction
Among individual companies, Oracle has announced the largest number of job cuts in 2026, according to the report.
The technology giant has cut 25,254 roles across multiple rounds since January, making its workforce reduction one of the most significant in the global technology industry this year.
Oracle had already begun reducing its workforce towards the end of 2025, but the pace of restructuring increased sharply in March 2026.
The cuts affected employees across several countries, including the United States, India, Canada and Mexico.
Oracle’s restructuring illustrates how workforce reductions can occur over multiple rounds rather than through a single announcement. Companies may gradually adjust staffing levels as they reassess demand, technology investment and long-term operating models.
AI Becomes a Central Theme Behind Layoffs
One of the most striking aspects of the latest Layoff data is the number of job cuts associated with AI.
Of the 1,63,427 technology layoffs announced globally since the beginning of 2026, AI was cited as a factor in 91,215 cases.
That represents more than half of the total job cuts tracked in the report.
However, the relationship between AI and layoffs is not necessarily straightforward. Companies can use AI as a reason for restructuring while simultaneously creating new jobs in areas such as AI engineering, data science, cybersecurity, cloud computing and machine learning.
In many cases, the issue is therefore not simply that AI is eliminating jobs. Instead, companies are changing the composition of their workforces to reflect new technological priorities.
Employees working in functions that can increasingly be automated or streamlined may face greater uncertainty, while demand for specialised AI and technology skills could rise.
Asia and Middle East Also See Workforce Reductions
The Layoff trend has extended beyond the United States.
According to the report, workforce reductions in Asia and the Middle East have affected several major technology and innovation centres.
Israel recorded the highest number of layoffs in the region, followed by India and Singapore.
The affected companies span a range of industries, including AI startups, e-commerce businesses and cybersecurity firms.
Israel ranked a distant second behind the United States in enterprise software layoffs, with 660 positions eliminated across two companies.
The regional distribution highlights the global nature of the technology industry’s restructuring cycle. Companies with operations across multiple countries are increasingly reviewing their workforce requirements as their business models evolve around AI and automation.
Monday.com Cuts Around 20% of Workforce
One of the most notable developments in Israel came from workplace software company Monday.com.
On July 22, the company announced plans to reduce its global workforce by approximately 20 per cent, equivalent to around 620 employees.
The company described the move as a restructuring around its AI Work Platform.
The announcement is significant because Monday.com’s decision reflects how AI is increasingly becoming central not only to technology products but also to corporate strategy and organisational structures.
Rather than treating AI as a separate product category, companies are increasingly integrating AI throughout their existing platforms.
This can require significant changes in staffing, product development and business operations.
OpenText Announces Workforce Reduction in Canada
Canada-based information management software company OpenText also announced workforce reductions in July 2026.
The company said it had reduced its global workforce by approximately 2 per cent, equivalent to around 400 employees, as part of what it described as “ongoing organisational planning.”
OpenText said the impact on its Canadian workforce was minimal despite the company being headquartered in the Kitchener-Waterloo region.
The development adds to evidence that technology restructuring is occurring across North America and is not confined to Silicon Valley or US-based companies.
Investors Reward AI-Focused Restructuring
Perhaps one of the most notable aspects of the current Layoff cycle is the reaction from financial markets.
Companies announcing workforce reductions are not necessarily being punished by investors. In several cases, markets have reacted positively when layoffs are presented as part of a broader AI investment or efficiency strategy.
Cisco’s shares jumped approximately 17 per cent in after-hours trading following its announcement.
Monday.com’s shares rose around 2.3 per cent, while ServiceNow gained roughly 9 per cent over the following week.
ServiceNow’s workforce restructuring came alongside a separate milestone for its AI business, with its AI portfolio surpassing $1 billion in annual contract value.
The market response suggests investors are increasingly willing to view workforce reductions as a sign of operational discipline when companies can demonstrate a clear strategy for deploying the savings towards growth areas such as AI.
‘Fewer Employees’ Can Be Seen as Business Discipline
Stanislava Savisheva, an analyst at TradingPlatforms, said the market reaction showed a growing willingness among investors to interpret AI-linked workforce reductions positively.
According to Savisheva, the market message is increasingly that large-scale layoffs can be viewed as a sign of discipline when companies frame the move as a shift towards AI.
The observation points to an important change in corporate messaging.
Previously, large Layoff announcements could be interpreted primarily as evidence of declining demand or financial pressure. Increasingly, companies are presenting workforce reductions as part of strategic transformation.
That distinction matters for investors because the same job cuts can produce different market reactions depending on the company’s explanation and growth outlook.
Why Are Technology Companies Cutting Jobs?
Several factors appear to be contributing to the current Layoff environment.
The first is the rapid development of AI. Companies are investing heavily in generative AI, automation and AI-powered enterprise products, creating pressure to redirect resources towards these areas.
The second factor is cost efficiency. After years of aggressive expansion across parts of the technology industry, companies are reassessing workforce sizes and operating structures.
Another factor is changing demand. Technology companies are adapting to shifting customer preferences, particularly as businesses increasingly seek AI-enabled software and services.
Finally, investors are placing greater emphasis on profitability and efficient capital allocation. Companies may therefore face pressure to demonstrate that their investments are generating measurable returns.
What the Layoff Trend Means for Technology Workers
The current wave of layoffs raises concerns for technology professionals, particularly those working in roles that are vulnerable to automation or restructuring.
At the same time, demand is increasing for skills connected to AI, cloud computing, cybersecurity, data engineering and advanced software development.
This creates a shifting employment landscape rather than a simple decline in technology jobs.
Workers may increasingly need to develop skills that complement AI rather than compete directly with automated systems.
Companies, meanwhile, could face challenges in finding specialised talent even while reducing their overall workforce.
India Remains an Important Part of the Global Technology Workforce
India’s position in the global technology industry makes developments in international workforce restructuring particularly significant for the country.
Indian technology professionals are employed across global technology companies, including multinational firms that have announced workforce reductions.
India was identified among the key centres affected by workforce reductions in Asia and the Middle East, according to the TradingPlatforms report.
At the same time, India’s large technology workforce and expanding AI ecosystem could create new opportunities as companies increase investment in AI development, cloud infrastructure and digital services.
The result could be a period of significant transition in India’s technology employment market, with some traditional roles declining while demand for AI-related expertise expands.
AI Could Reshape the Technology Workforce
The latest Layoff figures provide a clear indication that AI is becoming a major force behind corporate restructuring.
With 91,215 job cuts associated with AI out of more than 1.63 lakh technology layoffs globally, companies appear to be moving beyond experimentation and increasingly integrating AI into their core business strategies.
However, the long-term impact on employment remains uncertain.
AI could replace certain repetitive tasks while creating entirely new categories of work. It could also increase productivity and allow companies to grow without expanding their workforce at the same rate.
For technology workers, businesses and policymakers, the key challenge will be managing this transition while ensuring that workers have access to opportunities for reskilling and upskilling.
A Technology Industry in Transition
The global technology industry entered 2026 with a strong focus on efficiency, profitability and artificial intelligence. The resulting workforce reductions have already reached 1,63,427 announced layoffs, according to TradingPlatforms.
The numbers demonstrate the scale of the ongoing transformation.
From Oracle’s more than 25,000 announced cuts to Cisco’s 4,000-position restructuring and Monday.com’s 20 per cent workforce reduction, major technology companies are reshaping their organisations around new priorities.
The crucial question is whether these layoffs ultimately translate into stronger productivity, faster innovation and sustainable growth.
For investors, AI-focused restructuring may continue to be interpreted positively when companies demonstrate clear growth strategies. For employees, however, the transition could bring continued uncertainty as traditional roles evolve.
The Layoff wave therefore represents more than a series of workforce reduction announcements. It reflects a broader transformation of the technology industry, where AI is increasingly influencing investment decisions, corporate structures, hiring strategies and the future of work.
