Tech Layoffs in January 2026: A Wave of Job Cuts Across Major Companies
The year 2026 has kicked off with a significant wave of layoffs in the technology sector, as industry giants such as Amazon and Meta announce substantial job reductions. This trend highlights ongoing cost-cutting measures and the increasing integration of artificial intelligence into business operations.
Background and AI Influence on Workforce Reductions
According to data from independent tracker Layoffs.fyi, the tech industry witnessed 1,23,941 job cuts across 269 companies in 2025, a decrease from 1,50,000 layoffs at 549 companies in 2024. However, a notable shift in 2025 was the clearer role of AI in driving these reductions. A report by consulting firm Challenger, Gray & Christmas indicated that AI was responsible for at least 55,000 layoffs in the United States alone last year.
A World Economic Forum survey from 2025 further underscores this trend, predicting that over 41 percent of companies globally may reduce their workforces within the next five years due to AI advancements. This technological shift is prompting firms to automate routine tasks and streamline operations, leading to job cuts even as some companies hire AI-proficient talent.
List of Companies Announcing Layoffs in 2026
Here is a detailed look at the tech companies that have announced job cuts in early 2026:
- Amazon: On January 29, 2026, Amazon announced the elimination of approximately 16,000 corporate roles globally, marking its largest layoff round since October 2025. The company had previously cited AI adoption as a factor, though CEO Andy Jassy later emphasized efforts to reduce bureaucracy as the primary driver.
- Meta: The social media giant plans to cut around 10 percent of employees in its Reality Labs division, which focuses on metaverse products. This division employs about 15,000 people and has incurred significant losses, exceeding $60 billion since 2020.
- Pinterest: As part of a global restructuring, Pinterest will lay off over 15 percent of its workforce. The company stated that these changes align with its AI-forward strategy, aiming to hire more AI-proficient talent while reducing office spaces.
- Expedia: The online travel platform has fired some employees in January 2026, though exact numbers remain unclear. Expedia is simultaneously posting new job openings as it restructures to enhance efficiency and accountability.
- TCS (Tata Consultancy Services): The Indian IT major continues its planned two percent headcount reduction, with layoffs expected in the March quarter. This move primarily affects middle and senior management levels, following an announcement in July 2025 to cut roughly 12,000 jobs in the 2025-26 financial year.
Comparative Hiring Trends in the IT Sector
While TCS and others are reducing staff, other major IT firms like Wipro, Infosys, LTIMindtree, and HCL Technologies have added jobs in 2026. Infosys, in particular, led hiring efforts with an increase of 13,456 employees in the current financial year, indicating a mixed landscape in the tech job market.
The ongoing layoffs reflect a broader industry transformation, where companies balance AI integration with workforce adjustments to stay competitive and innovative.
