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AI-driven job disruption is now spreading beyond traditional technology firms and into Wall Street. This is where financial giants like Morgan Stanley have begun cutting thousands of roles as artificial intelligence is steadily reducing the need for large operational teams handling manual tasks.
RELATED: Amazon accounts for over half of 2026’s global tech layoffs
RationalFX offers insights in its latest report exploring the scale of global tech industry layoffs in 2026. It says mounting warnings from business leaders and economists point to artificial intelligence as a key accelerator of these layoff waves.
Machine learning and automation: Reshaping corporate DNA
Companies are restructuring around automation, and machine learning. Efficiency gains are putting not only individual roles but entire job functions at risk.
To determine which companies led 2026’s biggest job cuts, RationalFX compiled layoff data from multiple verified sources. They include U.S. WARN notices, TrueUp, TechCrunch, and the Layoffs.fyi tracker.
The data covers announcements made since the start of 2026. The full ranking of tech companies by number of layoffs is available on Google Drive via this link.
One in five tech layoffs tied to AI and restructuring
Data shows that roughly 9,238, or about 20% of the 45,363 tech layoffs recorded worldwide since the start of the year, have been linked to AI implementation and organisational restructuring.
The largest contributor to these reductions is the American technology firm Block (4,000 layoffs). CEO, Jack Dorsey, said in a post on social media that the decision was not driven by financial difficulty. But it was driven by the growing capability of AI tools to perform a wider range of tasks.
As a result, the company is significantly reducing its workforce. From roughly 10,000 employees to it is down to about 6,000, as it shifts its strategic focus more heavily towards AI.
Tech Companies With the Most Layoffs Due to AI So Far in 2026
- Block – 4,000 layoffs
- WiseTech Global – 2,000 layoffs
- Livspace – 1,000 layoffs
- eBay – 800 layoffs
- Pinterest – 675 layoffs
- ANGI Homeservices – 350 layoffs
- Oracle – 254 layoffs
- MercadoLibre – 119 layoffs
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Other highlights from the report
- Following last year’s restructuring at the American technology firm Block, which saw around 8% of its workforce (931 employees) laid off, CEO Jack Dorsey recently announced that the company would be reducing headcount by a further 40%, cutting 4,000 of its current 10,000 roles as part of AI-related automation and restructuring efforts. This represents the most significant wave of AI-driven layoffs so far in 2026.
- Australian logistics software developer WiseTech Global announced 2,000 layoffs. It is part of a sweeping AI-driven restructuring programme aimed at transforming how its logistics platforms are built and maintained. Company leadership argued that advances in generative AI and large language models are dramatically increasing software engineering productivity. Executives are stating that traditional approaches to writing and maintaining code are becoming increasingly obsolete.
- Singapore-based home design platform Livspace has cut 1,000 jobs. It is part of its push to accelerate the adoption of AI across its digital interior-design marketplace. Executives have framed the layoffs as part of a shift toward a more technology-driven platform capable of delivering faster and more personalised design services to customers.
- E-commerce platform eBay has also announced 800 layoffs, with the company increasingly investing in AI tools designed to automate product listings, pricing optimisation, and customer-service workflows. In recent years, the firm has rolled out AI systems capable of automatically generating product descriptions, categorising listings, and assisting sellers with pricing strategies, reducing the need for large support and operations teams.
- Social media platform Pinterest has confirmed around 675 layoffs, affecting roughly 15% of its workforce, as the company pivots toward what executives describe as an ‘AI-forward strategy’. Company filings note that the layoffs will allow Pinterest to prioritise AI-focused teams and products while reducing office space and streamlining its sales structure. The announcement triggered mixed reactions from investors and employees, with the company’s share price falling following the news and some users voicing concern about the growing volume of AI-generated content appearing on the platform.
AI acceleration tightens the screws on employment
‘Even as companies post record revenues in 2026, the tech sector continues to be fundamentally reshaped by AI. Firms such as Block and Amazon have explicitly tied workforce reductions to AI and automation as they reorganise around more efficient, technology-driven workflows. If these waves of layoffs continue at the current pace, economists warn they could place sustained upward pressure on unemployment across the sector and beyond as AI adoption accelerates.
This trend reflects a broader dynamic: firms are investing heavily in AI‑powered tools and infrastructure to boost efficiency, but the transition is also disrupting traditional job structures, as many entry-level positions have now become obsolete. As AI takes on more responsibilities once handled by humans, the question is no longer if jobs will change, but when and how.’
– comments Alan Cohen, analyst at RationalFX.
These conclusions were made based on layoff announcements, WARN notices, and independent layoff reports between January and March 2026. More information on the tech sector layoffs, the underlying reasons for job reductions, and our complete research methodology can be found in the full report.
The raw dataset is also available on Google Drive at the following link.
