Divyanshu G 
(C): Unsplash
The technology sector is facing a brutal start to the year, with 30,700 tech layoffs recorded in just the first six weeks of 2026. This number, provided by financial researcher RationalFX, is the highest year-on-year opening since the mass redundancy waves of 2023. The industry is also experiencing a huge correction, as opposed to a crash, as companies switch violently toward automation and efficiency.
Major Tech Companies Leading the Cuts
The wave of layoffs assumes an uneven distribution with several industry giants prevailing in it. Amazon takes the greatest share, which proves about 16,000 corporate layoffs in January alone as its restructuring.
European and Global Impact
Although the US technology industry has been the most affected with approximately 24,600 layoffs, Europe is also straining. Sweden-based Ericsson is to lay off 1,900 people and Dutch contractor semiconductor giant ASML is to lay off 1,700 positions. Others that have significantly cut down are Meta (1,500 in Reality Labs) and fintech company Block (1,100), which implies that belts will be tightened across the industry.
The AI and Automation Factor
One of the main reasons behind these tech 2026 layoffs is the strategic change in the industry to Artificial Intelligence. Companies are no longer just experimenting with AI but are actively restructuring teams to integrate AI automation. This recalibration is projected to substitute normal business operations with automation, which will enable the companies to sustain their productivity with smaller workforces within the companies as they record high profits.
FAQs
1. How many tech jobs were lost in early 2026?
Approximately 30,700 tech jobs were cut in the first six weeks of 2026, according to RationalFX data.
2. Which company had the most layoffs in 2026 so far?
Amazon has been on the forefront of the cuts with assured schemes of reducing approximately 16,000 corporate jobs in January 2026.
3. Why are tech companies laying off workers despite making profits?
Companies are prioritizing AI automation and efficiency over headcount growth, restructuring to lower costs while investing heavily in new AI infrastructure.
4. Is the 2026 layoff trend worse than 2025?
Yes, the current rate of 30,700 cuts in six weeks is on track to surpass the total tech job losses seen in 2025 if the trend continues.
