Layoff looms as Tech industry sheds over 1 lakh jobs in first half of 2026 amid AI-led cost cuts

Published 29 June 2026 · tech

The wave of layoffs that has hit the tech industry over the past two years is still continuing. In 2026 alone, more than one lakh

The wave of layoffs that has hit the tech industry over the past two years is still continuing. In 2026 alone, more than one lakh technology jobs have already been cut, making it another difficult year for workers across the global tech sector. Companies such as Microsoft, Intel, Cisco, PayPal, and Cloudflare are reducing their workforce while simultaneously investing heavily in artificial intelligence, automation, and data centre expansion. AI and automation have become the primary drivers behind these changes. A large number of announcements directly attribute job cuts to AI’s growing role in areas such as coding, customer support, content creation, quality assurance, data entry, and mid-level management. At the same time, companies are shifting investments toward AI infrastructure, model development, and emerging roles, while scaling back staffing in other functions.

So far in 2026, there have been 423 layoffs at tech companies with 158,249 people impacted (879 people per day). In 2025, there were 783 layoffs at tech companies w/ 245,953 people impacted (674 people per day), according to a report by Trueup. View full Image View full Image Tech employee influenced by layoffs. Source: Trueup. Major tech layoffs Among the biggest layoffs announced this year, Intel is reportedly cutting around 24,000 jobs as part of a large-scale restructuring exercise. Microsoft has carried out multiple rounds of layoffs in 2026, affecting more than 15,000 employees across various divisions. Cisco plans to eliminate about 4,000 positions, while PayPal is set to reduce its workforce by approximately 4,760 employees over the coming years as it shifts resources toward AI initiatives and operational simplification.

Cloudflare is laying off more than 1,100 employees, citing the growing role of AI in transforming both its internal operations and product development. Several other companies have also announced workforce reductions, including LinkedIn, Coinbase, Freshworks, ZoomInfo, Ticketmaster, Bill.com, DeepL, Upwork, Adda247, Arctic Wolf, Pocket FM, Truecaller, and numerous startups. Among the companies that have announced the largest workforce reductions in 2026, Intel leads with approximately 24,000 job cuts, followed by Microsoft, which has laid off more than 15,000 employees across multiple business units. PayPal plans to eliminate around 4,760 roles, while Cisco is cutting about 4,000 jobs. Cloudflare has announced more than 1,100 layoffs, and LinkedIn is reducing its workforce by 875 employees. Other notable layoffs include Bill.com (709), Coinbase (700), Freshworks (500), Ticketmaster (350), ZoomInfo (300), DeepL (250), Arctic Wolf (250), Adda247 (200), MRI Software (200), Staffbase (176), Upwork (151), Pocket FM (100), and Truecaller (70).