Tech Layoffs Are Running Ahead of 2025 as Companies Shift Spending Toward AI

From January through August 2026, U.S. tech layoffs reached at least 94,046, up 16.8% from 80,486 in the same period of 2025, according to Crunchbase’s Tech Layoff Tracker. The pattern was uneven: layoffs surged above 20,000 in January and peaked in May at 31,513, the highest monthly count since March 2023.

The recent trend has cooled. Layoffs fell each month after May, reaching 2,347 in August, while June through August totaled 19,331, down 16.2% year over year.

Crunchbase News reports that many cuts came as tech companies redirected spending toward AI and restructured operations to reduce costs. Roger Lee, founder of Layoffs.fyi, said AI was cited in 33% of tech layoff events this year, up from 1% in 2024.

Lee also said his tracker attributes 92,913 layoffs globally, or 72% of this year’s total, to AI. He cautioned that there has been little evidence AI is directly replacing the work of employees let go in the largest AI-attributed layoffs.

Public tech companies have led the 2026 layoff headlines so far, with Amazon and Meta among the largest disclosed totals through August. Lee said big companies made up about 87% of everyone laid off in 2026, similar to 85% last year.

Amazon accounted for 17,388 cuts through August, while Meta recorded 10,400 layoffs, including an 8,000-job reduction in May. Microsoft, PayPal, Block, Cisco, Cognizant, Intuit, Amdocs and Visa also appeared among the largest reported totals.

Andrew Challenger of Challenger, Gray & Christmas told Crunchbase News that AI is affecting jobs in two ways: some work can be done with fewer people, and companies are shifting resources toward AI-focused teams. That helps explain why a company may announce layoffs while also advertising new jobs.

The clearest takeaway is that AI is becoming a major budget and workforce-planning factor, not just a product strategy. The slowdown after May suggests some easing, but Crunchbase News notes it is too early to establish a lasting reversal.