Global tech sector records over 1.63 lakh layoffs this year; over 40 per cent due to AI

Global technology companies have announced 163427 layoffs since the start of 2026 with AI cited as a factor in 91215 of those job cuts a new report has saidThe report from TradingPlatforms said enterprise software accounted for roughly 814 per cent of the total job cuts making it the fifth most affected tech subsector after Cloud and SaaS 37492 layoffs ecommerce and marketplaces 22633 IT services 16756 and social media 13592Nearly 886 per cent enterprise software layoffs this year have occurred at USbased companies with 11792 of the 13308 job cuts recorded globallyCisco recorded the largest number of layoffs among USbased enterprise companies with 4000 positions cut followed by Amdocs with 2900 and Autodesk with 1000In Asia and the Middle East workforce reductions are spread across key innovation centres with Israel recording the highest number of layoffs followed by India and Singapore The cuts span a wide range of sectors including AI startups ecommerce platforms and cybersecurity firmsIsrael ranks a distant second after the US with 660 enterprise software layoffs across two companiesOn July 22 Israeli workplace software maker Mondaycom announced plans to cut around 20 per cent of its global workforce or roughly 620 employees as it restructured around its AI Work PlatformNo company has reduced its workforce more aggressively in 2026 than Oracle which has cut 25254 roles across multiple rounds since JanuaryWhile the company had already begun trimming staff toward the end of 2025 the scale of layoffs escalated sharply in March when thousands of employees across the United States India Canada and Mexico were dismissed in a sudden wave of cutsCanadas information management software company OpenText announced in July 2026 that it had cut around 2 per cent 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 KitchenerWaterloo areaCisco said the roughly USD 1 billion in restructuring costs from its cuts would go towards its AI strategyMondaycom described its 20 per cent workforce reduction as a restructuring around its AI Work Platform ServiceNows cuts landed alongside a separate milestone its AI portfolio crossing USD 1 billion in annual contract valueInvestors rewarded all three companies as Ciscos shares jumped 17 per cent in afterhours trading Mondaycoms rose 23 per cent and ServiceNows climbed roughly 9 per cent over the following weekStanislava Savisheva analyst at TradingPlatforms said that all these layoffs were blamed on AIThe 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 Savisheva saidThis story has been sourced from a third party syndicated feed agencies Midday accepts no responsibility or liability for its dependability trustworthiness reliability and data of the text Midday managementmiddaycom reserves the sole right to alter delete or remove without notice the content in its absolute discretion for any reason whatsoever