Layoffs 2026: List of Companies That Laid Off Massive Workforce Due to AI

The global corporate landscape is witnessing a sustained period of workforce contraction throughout 2026, with nearly 40 major organisations announcing significant layoffs within the first half of the year. This trend spans across critical sectors including technology, finance, media, and retail, driven by a combination of economic restructuring, shifting strategic priorities, and the rapid integration of artificial intelligence into daily operations.

Widespread Reductions and Strategic Pivots

The phenomenon of workforce reduction is being felt globally as companies seek to optimise their structures in an era defined by automation. As per a report by Business Insider, the rise of AI is consistently cited as a primary factor for these decisions, with many firms reallocating capital toward AI-native infrastructure. While some organisations are pivoting toward new business models to improve long-term productivity, the human cost remains substantial, with thousands of employees affected across diverse roles. AI Layoffs Boomerang Effect: Know What It Is and Why Companies Are Rehiring Workers.

Amazon Layoffs

Amazon initiated 2026 with a significant reduction, eliminating approximately 16,000 corporate roles globally in January to address internal bureaucracy. This action followed substantial layoffs in late 2025 and continued into May, when the company's Selling Partner Services team also underwent a restructuring process to further streamline its operations.

Angi Layoffs

Contractor listing platform Angi announced in January that it would cut 350 jobs to optimise its organisational structure and reduce operating expenses. The company explicitly linked these layoffs to AI-driven efficiency improvements, estimating that the restructuring would result in annual savings between USD 70 million and USD 80 million.

Atlassian Layoffs

Enterprise software firm Atlassian confirmed on 11 March that it would cut 10% of its workforce, impacting roughly 1,600 employees. CEO Mike Cannon-Brookes stated that while the company believes in the synergy between humans and AI, the technology has fundamentally altered the mix of skills and the number of roles required within the organisation.

British American Tobacco Layoffs

British American Tobacco has embarked on a plan to reduce its workforce by 9,000 roles by the end of the year, representing nearly one-fifth of its staff. The company aims to become a "technology enabled" organisation as it shifts its focus toward smoke-free alternatives, such as vapes and nicotine pouches, excluding the US business arm from these specific cuts.

Citi Layoffs

Citibank continues its previously announced plan to reduce its global headcount by 10%, or approximately 20,000 employees. The bank confirmed in January that it would persist with these reductions throughout 2026 to ensure its staffing levels and expertise align with current business needs and financial targets.

Cloudflare Layoffs

Cybersecurity firm Cloudflare announced on 7 May that it would cut roughly 20% of its global workforce, affecting over 1,100 employees. Executives noted that the company's rapid adoption of AI has climbed by more than 600% in recent months, necessitating a reimagining of every internal process and role within the business.

Coinbase Layoffs

Coinbase CEO Brian Armstrong informed staff on 5 May that the company would cut 14% of its workforce, largely attributed to the efficiency gains provided by AI tools. Armstrong noted that engineers were able to complete tasks in days that previously took teams weeks, necessitating a leaner structure with fewer management layers.

Crypto.com Layoffs

In March, Crypto.com laid off 12% of its workforce, as CEO Kris Marszalek emphasised the necessity of adapting to a new economic landscape. The company is prioritising the pairing of top-performing staff with advanced AI tools to achieve a level of operational scale and precision that was previously unattainable.

Dell Layoffs

Dell reported a 10% reduction in its workforce for the third consecutive year, according to its annual SEC filing. By the end of January 2026, the company had 97,000 employees, reflecting a decline of 11,000 roles over the past year resulting from a mix of direct layoffs and natural attrition.

eBay Layoffs

eBay is in the process of eliminating approximately 800 positions globally, representing 6% of its workforce. The company stated that these measures are essential to align its organisational structure with its long-term strategic priorities and to maintain competitiveness in the e-commerce sector.

Epic Games Layoffs

Epic Games announced in March that it would cut more than 1,000 jobs, or 20% of its workforce, as engagement with its flagship title, Fortnite, declined. Unlike many other tech firms, CEO Tim Sweeney clarified that these layoffs were related to the company’s specific business needs rather than an AI-driven replacement strategy.

Estée Lauder Layoffs

Estée Lauder revealed in its May earnings report that it is deepening its restructuring efforts, now expecting to impact up to 10,000 roles. More than two-thirds of these reductions involve cashier and demonstration positions at lower-performing retail outlets as the company seeks to improve its operational footprint.

Expedia Layoffs

Expedia confirmed that it laid off an unspecified number of employees on 26 January as part of a move to simplify its structure. The company is actively assessing the skills required for its future roadmap, involving both the elimination of existing roles and the opening of new positions.

Freshworks Layoffs

Software firm Freshworks announced plans to cut 11% of its staff during its May earnings call. CEO Dennis Woodside noted that AI now generates approximately half of the company's code, which has significantly altered the building process and reduced the number of personnel required for product development.

General Motors Layoffs

General Motors is cutting 600 salaried employees from its global IT division as part of an overhaul. The company is specifically looking to prioritise expertise in AI-native development, data engineering, and cloud workflows to better position the firm for a software-driven future.

GoPro Layoffs

GoPro announced on 7 April that it would lay off 145 employees, or 23% of its global headcount, to reduce operating costs. This restructuring follows a previous round of cuts in August 2024 and is expected to be largely completed by the end of the year.

Groupon Layoffs

Groupon is set to cut up to 400 roles globally by the end of the third quarter of 2026. The company, which is transitioning toward being an "AI-native company," plans to reinvest a portion of the resulting savings back into its AI infrastructure and talent acquisition.

Heineken Layoffs

Heineken has initiated a multi-year productivity plan that includes cutting 5,000 to 6,000 roles over the next two years. The brewer is facing subdued consumer sentiment in the Americas and a challenging market environment in Europe, prompting a drive for cost discipline.

Intuit Layoffs

Financial software provider Intuit announced on 20 May that it would cut 17% of its full-time workforce. CEO Sasan Goodarzi stated the move was necessary to reduce management complexity and improve organisational velocity, with restructuring costs estimated to reach up to USD 340 million.

Kenvue Layoffs

Healthcare brand Kenvue plans to cut 3.5% of its workforce, impacting its global staff of approximately 22,000. The board intends to use this restructuring to reduce organisational complexity and drive operational efficiencies, with costs estimated at USD 250 million for the year.

LinkedIn Layoffs

LinkedIn announced on 13 May that it was laying off staff across its marketing, engineering, and product teams. The company is also scaling back investments in customer events and physical office space as it seeks to reinvent its work processes to focus on high-priority infrastructure goals.

Lululemon Layoffs

Lululemon cut approximately 100 part-time roles at its North American customer service centres in January. The company stated that the move was intended to transition the business to a full-time employee staffing model to strengthen its overall service operations.

Meta Layoffs

Meta began laying off workers in March across several divisions, including Reality Labs and global operations. These cuts are part of an ongoing restructuring effort to align the company's teams with its current focus on AI infrastructure and talent, moving resources away from its metaverse-focused projects.

Nike Layoffs

Nike is cutting approximately 1,400 jobs, primarily in its tech division, as part of a "win now" turnaround plan. This follows an earlier round of 775 layoffs in January focused on streamlining its distribution center operations in Tennessee and Mississippi through increased automation.

Oracle Layoffs

Oracle’s total headcount decreased by roughly 13%, or 21,000 employees, over the past year. The company explicitly cited the adoption and deployment of AI technologies across its operations as a driver for these reductions, while restructuring costs rose to USD 1.84 billion for the fiscal year.

Papa Johns Layoffs

Papa Johns is cutting 7% of its corporate staff as part of a broader restructuring. Additionally, the company plans to close 300 locations in North America over the next two years, aiming to improve overall restaurant profitability and fleet health.

Pinterest Layoffs

Pinterest announced a global restructuring in January that included layoffs affecting up to 15% of its workforce. The company is making these changes to focus on its AI-forward strategy, which includes an emphasis on hiring talent with specific expertise in AI development.

Saks Layoffs

Saks Global has conducted several rounds of layoffs, including a 16% reduction in its corporate staff in April. Following its Chapter 11 bankruptcy filing in January, the company is right-sizing its organisation to focus on luxury retail and exit non-core business activities.

Sprout Social Layoffs

Social media management company Sprout Social announced on 15 July that it would cut 260 jobs, or 20% of its workforce. CEO Ryan Barretto stated that the rapid pace of industry change required the firm to adjust its investment strategy for the future.

Standard Chartered Layoffs

Standard Chartered plans to eliminate 15% of its corporate function roles over the next four years. CEO Bill Winters stated that the bank is replacing lower-value human capital with investment in AI, with the goal of supporting remaining staff into higher-value roles.

T-Mobile Layoffs

T-Mobile confirmed it cut some staff in early 2026, although the company did not disclose the total number of affected employees. The moves are intended to ensure the company maintains the right structure to drive industry innovation and customer service momentum.

Tailwind Layoffs

Web tool developer Tailwind cut three of its four engineers in January. CEO Adam Wathan attributed the decision to the "brutal impact" AI has had on the company’s business model and overall revenue generation.

Target Layoffs

Target is cutting 100 district office roles and 400 supply chain positions. The retailer intends to reinvest the resulting savings into additional labor hours at its stores to enhance the customer experience and drive growth under its new CEO, Michael Fiddelke.

UPS Layoffs

UPS announced a plan to reduce its operational workforce by 30,000 in 2026. The company intends to achieve this reduction primarily through attrition and voluntary separation programs, alongside the closure of 24 facilities during the first half of the year.

Verizon Layoffs

Verizon is transitioning 274 of its retail stores to franchise operations, affecting approximately 3,000 employees. Additionally, the firm cut several hundred corporate roles in May as part of its ongoing efforts to reallocate workers and streamline its overall business operations.

Walmart Layoffs

Walmart moved to cut or relocate 1,000 corporate jobs in May to address redundancies and duplicate roles. The company is attempting to simplify its organisational structure and align its staff with the specific skills needed for its long-term technology and AI roadmap.

WiseTech Layoffs

Logistics software company WiseTech is cutting 30% of its workforce, or 2,000 jobs, due to AI-driven efficiency gains. CEO Zubin Appoo stated that the era of manually writing code as the core act of engineering is effectively over, as AI achieves productivity levels previously thought impossible.

Wix Layoffs

Wix announced a 20% workforce reduction in May, with CEO Avishai Abrahami citing the rapid evolution of AI capabilities. The company is aiming to become a leaner and faster organisation to adapt to the changing demands of the website-building software market. Silent Layoffs Surge Across India's Tech Industry as AI Reshapes Work; IT Sector Could See 35,000 Job Cuts: Report.

Workday Layoffs

Workday confirmed it is cutting roughly 2% of its workforce, or 400 jobs, in February. The company is redirecting these resources toward higher-priority areas, specifically targeting the reduction of non-revenue generating, customer-facing roles.*

(The above story first appeared on LatestLY on Jul 18, 2026 03:35 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).