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US tech firms cut 140,000 jobs in 2026

US tech firms cut 140,000 jobs in 2026

During the year 2026, the U.S. tech sector saw the layoffs of around 140,000 employees, despite a significant rise in AI investments exceeding $725 billion in data centers and cloud computing services. These cuts come at a time when major companies such as Amazon, Microsoft, and Oracle are increasing their spending on AI infrastructure, with some executives attributing the layoffs to changing business needs following the COVID-19 pandemic and corporate investments in technology. Although some companies blamed AI to justify job cuts, their performance was notably weaker— the Nasdaq Index fell by about 10% after the announcements. Meanwhile, AI startup companies are trending towards increasing hiring, with substantial expansion in their teams.

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