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Tech sector layoffs are accelerating once again after an unusually quiet June and July, and they are now on track to surpass last year’s total of 246,000.
RELATED: Cloud and SaaS companies account for 28,000 of April’s 80,000+ tech layoffs
TradingPlatforms has published а comprehensive report that tracks the tech companies laying off staff since the start of 2026.
To get a clearer picture of the scale of layoffs that have been sweeping through the global tech sector since the pandemic, the team at TradingPlatforms analysed data from multiple layoff tracking websites, including TrueUp and TechCrunch.
They also checked multiple state WARN (Worker Adjustment and Retraining Notification) filings and identified the companies behind the largest workforce reductions so far this year, highlighting the most heavily impacted regions and companies in the tech industry.
The full list of tech companies with confirmed layoffs for 2026 is available on Google Drive via this link.
Jobs in enterprise software companies are hardest-hit
The research shows that enterprise software companies have announced or recorded 13,308 layoffs in 2026, placing the sector among the hardest-hit areas of the broader technology industry. California-based ServiceNow was among the latest high-profile enterprise software companies to announce significant job cuts, revealing plans to eliminate up to 1,000 positions, equivalent to around 3% of its global workforce.
The cuts came shortly after the company reported a 24% year-on-year increase in second-quarter revenue to $3.99 billion, while its AI portfolio surpassed $1 billion in annual contract value for the first time.
Key highlights from the report
- The wider tech sector has recorded a total of 163,427 layoffs since the beginning of 2026. Enterprise software companies account for roughly 8.14% of the global total, making it the fifth most heavily affected by layoffs tech industry, behind Cloud & SaaS (37,492 layoffs), E-commerce & Marketplaces (22,633), IT Services (16,756) and Social Media (13,592).
- The overwhelming majority of enterprise software layoffs this year have occurred at U.S.-based companies, with 11,792 of the 13,308 job cuts recorded globally, roughly 88.6%. Cisco recorded the largest number of layoffs among U.S.-based enterprise companies, with 4,000 positions cut, followed by Amdocs with 2,900 and Autodesk with 1,000.
- Israel ranks a distant second, with 660 enterprise software layoffs across two companies. On July 22, Israeli workplace software maker Monday.com announced plans to cut around 20% of its global workforce, or roughly 620 employees, as it restructured around its AI Work Platform. Darrow, a Tel Aviv-based legal-tech company that uses AI to identify potential legal claims and connect them with law firms, cut 60 employees on July 7, including 40 in Israel, in a restructuring that affected roughly one-third of its workforce.
- Canada’s information management software company OpenText announced in July 2026 that it had cut around 2% of its global workforce, or roughly 400 employees, as part of “ongoing organisational planning”. OpenText said the impact on its Canadian workforce was minimal, despite the company being headquartered in the Kitchener-Waterloo area.
- Two European enterprise software companies recorded 456 layoffs this year. Amsterdam-based Elastic, the search and data analytics software developer, cut 280 jobs on June 24, or around 7% of its global workforce, as it simplified its organisational structure and redirected resources towards growth areas including AI. German employee communications software company Staffbase cut 176 employees on May 8, around 22% of its workforce, as part of a restructuring aimed at streamlining the business.
- So far this year, AI has been cited as a factor in 91,215 of the 163,427 layoffs recorded globally, and enterprise software companies are a meaningful part of that total. Cisco said the roughly $1 billion in restructuring costs from its cuts would go towards its AI strategy. Monday.com described its 20% workforce reduction as a restructuring around its “AI Work Platform” ServiceNow’s cuts landed alongside a separate milestone, its AI portfolio crossing $1 billion in annual contract value. Investors rewarded all three companies: Cisco’s shares jumped 17% in after-hours trading, Monday.com’s rose 2.3%, and ServiceNow’s climbed roughly 9% over the following week.
Layoffs blamed on AI
‘Not too long ago, a company announcing thousands of layoffs was almost guaranteed to be read as a warning sign by investors and shareholders. This is no longer the case. Cisco cut nearly 4,000 jobs and saw its shares surge 17% in after-hours trading, its biggest single-day rally in over two decades. Monday.com’s shares gained 2.3% after it announced cuts affecting around 20% of its workforce and raised its operating-margin outlook. ServiceNow is cutting up to 1,000 positions while growing revenue by 24%.
What do all these companies have in common? All of these layoffs were blamed on AI. The message from markets is increasingly clear: massive waves of layoffs are now seen as a sign of discipline, as long as the story is some kind of pivot toward AI. Fewer employees, framed the right way, now reads as a stronger business, with its priorities straight. Wall Street stopped punishing layoffs the moment companies learned to call them AI strategy.’
– comments Stanislava Savisheva, analyst at TradingPlatforms.
These findings are based on layoff announcements, WARN filings, and independent reports since January 2026. For a deeper look at tech sector layoffs, the factors driving job reductions, and the full research methodology, please refer to the complete report. The raw dataset is also accessible on Google Drive at the following link.
