Tech Giants Cut Thousands in Layoffs Tied to AI
The tech industry is experiencing significant layoffs in 2026, with several major companies attributing reductions to artificial intelligence (AI).
Microsoft recently laid off 4,800 employees, citing AI as a factor in its decision. The company's executive vice president and chief people officer, Amy Coleman, explained that the eliminated roles weren't being replaced by AI, but rather AI is changing how work gets done.
Oracle has also attributed recent layoffs to increased investment in AI, forecasting future cuts due to the technology. In a blog post, Oracle stated that adoption and deployment of AI technologies across its operations have resulted in reductions to its workforce.
Other companies are pointing to macroeconomic factors, inflation, revenue declines, internal restructuring initiatives, and supply shortages as contributing to workforce reductions. Cisco cut 4,000 roles, or 5% of its workforce, due to the macroeconomic climate, competition, and component supply shortages. The memory chip shortage is expected to continue at least through 2027.
The impact of AI on workforces will likely continue to be a major factor in layoffs for the remainder of the year. CIOs are being advised to consider how best to train employees with skills to navigate the AI era, prioritizing versatility and communication of business outcomes.