AI reshapes big tech as over 76,000 jobs disappear in 2026

More than 76,000 jobs have been cut by the world’s biggest technology companies in the first seven months of 2026.

This comes as firms accelerate restructuring efforts driven by artificial intelligence, cost optimisation and changing business priorities.

A report by Nairametrics showed that the 10 largest technology layoffs announced globally this year affected more than 76,000 employees, with industry giants including Oracle, Amazon, Dell Technologies, Meta, Microsoft, Cisco, Intuit, Atlassian and Cloudflare among those reducing their workforce.

Artificial intelligence emerged as one of the most common reasons cited by companies for the layoffs, with many redirecting investments toward AI infrastructure and automation while reducing headcount in other business units.

However, the trend has sparked debate within the technology industry. OpenAI Chief Executive Officer, Sam Altman, criticised what he described as “AI washing,” accusing some companies of using artificial intelligence as a convenient explanation for layoffs that are primarily driven by financial considerations.

The report noted that while some firms blamed AI for workforce reductions, others announced job cuts despite posting record revenues, suggesting that the restructuring reflects a combination of automation, capital reallocation and post-pandemic business adjustments.

Oracle recorded the largest workforce reduction this year, cutting about 21,000 employees, roughly 13 per cent of its global workforce.

In its filing with the U.S. Securities and Exchange Commission (SEC), Oracle directly linked the decision to artificial intelligence, stating: “The adoption and deployment of AI technologies across our operations have resulted, and may continue to result, in reductions to our workforce.”

Amazon ranked second after announcing plans to eliminate 16,000 corporate jobs in January, following another 14,000 layoffs in late 2025. Combined, the cuts represent the largest workforce reduction in the company’s history, affecting about 30,000 corporate employees.

Dell Technologies followed with approximately 11,000 job cuts, while Meta reduced its workforce by about 10,200 employees across multiple rounds of layoffs. The social media giant had earlier signalled that 2026 would be “the year that AI starts to dramatically change the way that we work,” according to Chief Executive Officer Mark Zuckerberg.

Block, the financial technology company founded by Jack Dorsey, eliminated more than 4,000 jobs, about 40 per cent of its workforce, the largest percentage reduction among major technology firms this year. Dorsey maintained that the decision was not driven by financial challenges but by changes in how AI is transforming work.

Microsoft also cut about 4,800 positions, although the company rejected suggestions that artificial intelligence directly replaced the affected employees.

In an internal memo, Executive Vice-President and Chief People Officer Amy Coleman said: “The roles eliminated today are not being replaced by AI.”

The company’s Chief Financial Officer, Amy Hood, nevertheless acknowledged that Microsoft’s overall workforce would continue to decline as investments shift toward AI infrastructure.

Cisco Systems announced about 4,000 job cuts despite reporting record quarterly revenue of $15.8 billion. Explaining the restructuring, Chief Financial Officer Mark Patterson said: “This was really not a savings-driven restructure. This is more [about] realigning resources around silicon, optics, security and AI.”

Intuit, maker of TurboTax and QuickBooks, cut roughly 3,000 jobs but insisted the decision was unrelated to AI replacing workers. Chief Executive Officer Sasan Goodarzi said the move was intended to simplify the organisation and improve execution.

Atlassian, the software company behind Jira and Confluence, laid off about 1,600 employees. Explaining the decision, Chief Executive Officer Mike Cannon-Brookes said: “It would be disingenuous to pretend AI doesn’t change the mix of skills we need or the number of roles required in certain areas.”

Cloudflare rounded out the top 10 after cutting more than 1,100 employees, representing about 20 per cent of its workforce, as it shifted its strategy towards AI-native infrastructure despite recording strong revenue growth.

The report underscores the growing influence of artificial intelligence on corporate strategy, with technology companies increasingly redirecting investment toward AI development even as concerns mount over the impact on employment across the global technology sector.