Global technology companies and startups continued their cost-cutting drive into 2026, shedding nearly 25,000 jobs in January as the industry reshapes itself around artificial intelligence, cloud infrastructure, and data centres.
According to layoff-tracking platform Layoffs.fyi, a total of 24,818 employees were laid off across 27 tech companies worldwide during the month. The cuts spanned global giants such as Amazon, Meta, and Ericsson, as well as Indian firms like Zupee, underlining a broad-based reset across the technology ecosystem.
Amazon accounted for the largest share of layoffs, letting go of around 16,000 employees on January 28. Despite the cuts, the company reiterated that it would continue hiring in strategic areas critical to its long-term growth. Meta announced 1,500 job losses, roughly 10 percent of its Reality Labs division, as it recalibrates its focus. Swedish telecom equipment maker Ericsson said it would eliminate 1,600 roles in Sweden as part of ongoing cost-saving measures. Software firms Autodesk and Pinterest also reduced close to 1,000 jobs each.
The trend may be far from over. Reports suggest Oracle is considering up to 30,000 layoffs as it reallocates capital toward expanding its data-centre footprint, indicating that workforce reductions could intensify through the year.
In India, online gaming platform Zupee laid off about 200 employees as part of its restructuring efforts following the nationwide ban on real-money gaming, adding to domestic tech sector uncertainty.
Industry analysts say the layoffs are largely driven by a sharp shift in capital allocation. Companies are aggressively investing in AI models, GPUs, cloud platforms, and large-scale data centres, often at the expense of other business units. Automation and AI-driven tools are also replacing certain roles, forcing firms to redesign their workforce structures.
Beyond the AI push, investor pressure to improve cash flow, streamline operations, and boost profitability is accelerating the pace of job cuts. Recent data shows that tech layoffs peaked in the first quarter of 2023, when more than 170,000 jobs were eliminated. Cuts continued steadily through 2024 and 2025, with over 25,000 roles lost in April 2025 alone.
January 2026 has now emerged as another grim marker in the prolonged wave of tech layoffs, deepening concerns across the sector about job security and signaling that the industry’s transformation is still far from complete.
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