Microsoft Leads the Charge

Microsoft recently announced that it has eliminated approximately 4,800 roles, which translates to 2.1% of its global workforce. This move is part of a broader trend in the tech industry where companies are laying off workers, citing AI as the primary reason. The company stated that the roles being cut are not being replaced by AI, but rather acknowledged that AI is changing the way work gets done and automating many everyday tasks.

The tech layoffs have reached an all-time high, with over 120,000 tech roles cut in 2026 alone, according to Layoffs.fyi, a tracker that has been monitoring industry layoffs since 2020. The most-cited reason for these layoffs is AI, with many companies citing its impact on their workforce and operations.

Affected Companies

Oracle

Oracle has reduced its workforce by 21,000 employees over the past 12 months, a decline of 13%. The company cited AI as a factor in these layoffs, stating that the adoption and deployment of AI technologies have resulted in workforce reductions.

Other companies affected by AI-driven layoffs include:

• GitLab: Laid off approximately 350 workers, about 14% of its staff, to fund AI infrastructure investment and handle surging traffic from AI workflows.
• Google: Quietly cut employees across its Cloud division, including its Threat Intelligence Group and Mandiant-linked cybersecurity staff, even as Cloud revenue grew 63% to exceed $20 billion for the first time.
• Intuit: Announced plans to eliminate roughly 3,000 jobs, about 17% of its total workforce, in a restructuring centered on reducing complexity and reallocating resources toward AI.
• Cisco: Announced it’s cutting nearly 4,000 jobs, about 5% of its workforce, despite reporting better-than-expected profit and revenue.
• Cloudflare: Cut about 20% of its workforce (1,100 people), reporting quarterly revenue of $639.8 million, up 34% year-over-year and the highest single quarter in company history.
• General Motors: Eliminated 500 to 600 jobs, largely in IT roles in Austin, Texas, and Warren, Michigan, saying it was reevaluating its workforce needs amid uncertain market conditions.
• Coinbase: Cut about 700 employees, or 14% of its staff, as part of a restructuring aimed at addressing market volatility and increasing AI efficiency.
• PayPal: Announced plans to cut around 20% of its workforce over the next two to three years, north of 4,500 jobs, as part of a turnaround strategy centered on AI adoption and organizational simplification.
• Microsoft: Offered buyouts structured as voluntary separations, without disclosing how many employees these would impact.
• Snap: Cut roughly 16% of its global workforce, about 1,000 full-time employees, and closed more than 300 open roles, citing AI advancements as a key driver.
• IBM: Rolled out layoffs through 2026, with estimates ranging from 3,000 to 9,000 U.S. positions eliminated, bringing IBM’s cumulative total since September 2024 above 15,000.