Tech Layoffs Accelerate Amidst Growing AI Adoption

According to recent reports, more than halfway through 2026 has seen an influx of tech layoffs across various major companies. In June, it was reported that EV automaker Lucid, game developer Bungie, trading platform company Robinhood, and others cut around 14,000 jobs collectively.

Microsoft began its latest round of layoffs in July, affecting approximately 4,800 employees, mainly within its Xbox gaming division. This move comes on the heels of Oracle's significant job cuts, with the software giant reporting a reduction of 21,000 positions over the past year, accounting for around 13% of its workforce.

Oracle attributed these layoffs to the adoption and deployment of AI technologies across their operations. California Governor Gavin Newsom responded by introducing a tool to track AI's impact on the workforce, stating that 'As AI advances, we aren't just watching from the sidelines; we're reimagining how we prepare California through strong governance and innovative policy.'

TrueUp found that layoffs in the tech sector seem to be escalating at a faster rate compared to last year, with over 245,000 workers let go in 2025 and more than 180,000 so far in 2026.