Tech Giants Cut Thousands of Jobs Amid AI-Driven Downsizing

The tech industry has been hit hard by layoffs in 2026, with many major companies cutting jobs due to increased spending on artificial intelligence. Oracle led the way with a whopping 21,000 job cuts, roughly 13% of its workforce, citing AI adoption as the reason.

Microsoft followed suit, laying off 4,800 employees, mostly in its Xbox division. Other notable layoffs include Apple's Vision Group and Intelligent Systems Experience group, which affected over 200 people, and TikTok's Nashville office, which closed with a loss of 250 jobs.

Zillow, Etsy, and Uber also made significant cuts, totaling around 2,500 employees combined. Meanwhile, Google workers signed a petition calling for layoff protections, including buyouts before mandatory layoffs and guaranteed severance.

According to reports, the U.S. is at the center of these job cuts, with many companies citing AI as a reason for their downsizing efforts. California Governor Gavin Newsom unveiled a tool to track AI's impact on the workforce in June, acknowledging the need for strong governance and innovative policy in response.