Tech Layoffs 2026: Amazon, Meta Lead New Wave of Job Cuts as AI Automation and Corporate Restructuring Reshape Industry

Mumbai, January 25: The global technology sector has entered 2026 with a continued wave of workforce reductions, following a turbulent period that saw over 1,23,000 employees lose their jobs in the previous year. Data from independent tracker Layoffs.fyi indicates that while the total volume of cuts decreased from 2024 to 2025, the opening weeks of this year suggest that major corporations are still aggressively trimming their headcounts to manage costs.

The current landscape is increasingly defined by the integration of Artificial Intelligence and a shift away from pandemic-era over-hiring. Reports from consulting firm Challenger, Gray & Christmas highlight that AI adoption was a direct factor in at least 55,000 job losses in the United States alone during 2025, a trend that market analysts expect to accelerate as firms automate routine coding and administrative tasks. Layoffs: Indian Techie Lands New Job With 50% Salary Hike Within 1 Month of Sudden Termination; Social Media Post Goes Viral.

Amazon’s Major Corporate Downsizing

Amazon is reportedly preparing for one of the most significant staff reductions in its history, with plans to axe approximately 30,000 corporate roles. The cuts are expected to impact multiple divisions, including Amazon Web Services (AWS), Prime Video, retail, and human resources. While the company previously linked workforce changes to the "transformative" nature of AI, CEO Andy Jassy recently attributed the move to a need for reducing corporate bureaucracy and layers of management.

This latest round follows a series of layoffs in late 2025, where the company aimed to streamline its white-collar workforce. Despite the conflicting internal narratives regarding the role of AI, the retail giant remains one of the few firms to have explicitly stated in previous correspondence that this technology would enable the company to innovate faster with a smaller corporate footprint over time.

Meta Trims Reality Labs Division

Social media giant Meta has also initiated new rounds of layoffs, specifically targeting its Reality Labs division. Reports suggest a 10 per cent reduction in staff within the unit responsible for the metaverse, virtual reality headsets, and smart glasses. This division has faced intense scrutiny after burning through more than USD 60 billion since 2020, leading CEO Mark Zuckerberg to recalibrate spending on long-term experimental projects.

AI Redundancy and Economic Sentiment

At the recent World Economic Forum in Davos, global leaders expressed mixed views on the true impact of AI on the labour market. International Monetary Fund (IMF) Managing Director Kristalina Georgieva warned that AI is hitting the labour market like a "tsunami," potentially boosting growth but requiring an immediate focus on new skills. However, some analysts at Deutsche Bank have cautioned that "AI redundancy washing"—where companies blame AI for cuts actually driven by general market uncertainty—will be a major theme throughout 2026. Layoffs Due to AI: Artificial Intelligence Impacting Global Labour Market ‘Like a Tsunami’ Amid Mounting Job Loss Fears in Employees in 2026.

In India, the Economic Survey 2023-24 had previously flagged that AI could create a "huge pall of uncertainty" for workers. The report specifically noted that those in backend operations and business processing outsourcing (BPO) face the highest risk of displacement. As the year progresses, the industry remains divided on whether AI is a job killer or an upskilling opportunity, even as employee anxiety regarding job security continues to rise globally.

(The above story first appeared on LatestLY on Jan 25, 2026 02:31 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).