AI layoffs 2026: From Oracle to Amazon, these tech companies cut over 35,000 jobs so far this year

Layoffs continue across the global technology sector as companies adapt to a rapidly changing industry shaped by artificial intelligence. After a challenging year in which more than 120,000 tech workers lost their jobs, many companies are still reducing headcount while shifting investments to artificial intelligence and automation.

More than 35,000 tech workers have been laid off by 50 tech companies so far this year, according to independent layoff tracker Layoffs.fyi. The figures tracking layoffs in the tech sector are based on data through February 28.

Some of the biggest pink slips came from Oracle, Amazon, and Meta, collectively affecting thousands of employees across different segments and regions. These layoffs, often linked to artificial intelligence, are implemented by companies looking for ways to cut expenses.

List of companies making layoffs due to artificial intelligence move

Many major tech companies have announced large-scale workforce reductions this year. Some notable examples of these layoffs include:

— Oracle: According to a Bloomberg report, the cloud software company is preparing to lay off thousands of employees in various departments. Layoffs could start this month. The move is reportedly part of Oracle’s efforts to manage a cash crunch resulting from its massive spending on AI data centers.

– To obstruct: The Jack Dorsey-led company behind Square, Cash App and Afterpay is laying off nearly half its staff as part of an overhaul to embrace artificial intelligence in its operations. More than 4,000 employees would be allowed to deploy “intelligence tools” as part of the plan, Dorsey said in a letter to shareholders.

— Living area: The Bengaluru-based home decor and renovation platform laid off nearly 1,000 employees in February; This accounts for approximately 25% of the 4,000-person workforce. According to the Mint report, the unicorn cited its goal to transition to an AI-specific, mediated organization as the reason for this.

—Amazon: The US online retail and cloud computing giant laid off 16,000 corporate employees in January as part of efforts to streamline operations amid growing competition in artificial intelligence. This was the second mass layoff since October 2025.

— Nike: The US-based athletic shoe and apparel company laid off 775 employees in January as it aimed to increase profits and accelerate its use of “automation,” according to CNBC. The layoffs affect distribution center roles in Tennessee and Mississippi, where the sneaker giant operates large warehouses.

— Meta: In January, the company behind Facebook laid off nearly 10% of employees working on products including its metadatabase in its Reality Labs division as the company shifted its priorities to build the next generation of artificial intelligence. Prior to the layoffs, the segment had approximately 15,000 employees. New York Times reported.

Companies and tech moguls praise AI’s capabilities

Many technology executives have praised AI’s capabilities, with some noting that the technology could be more effective than humans in certain areas. Airbnb’s CEO Brian Chesky made similar statements during the company’s fourth-quarter earnings call.

The company’s in-house AI representative now handles about a third of customer support requests in North America, he explained. Chesky also said that if the feature’s global launch goes well, he expects more than 30% of all customer support queries to be handled by AI within a year.

“We think this will be huge because not only will this reduce the cost base of Airbnb customer service, but it will also be a huge step change in the quality of service,” Chesky said, suggesting that AI bots could do a better job than their human counterparts at solving certain problems.

Similarly, Spotify co-chief executive Gustav Soderstrom said last month that AI is now deeply embedded in the music platform’s engineering workflow, which is tasked with building and distributing software with minimal human coding. “Our most experienced developers haven’t written a line of code since December,” Soderstrom said during the earnings call.