Over 1 lakh jobs have been eliminated in the technology sector in the first five months of 2026, with May alone seeing nearly 28,900 roles lost, according to a report by Layoff.fyi. The report highlighted that a total of 1,16,739 tech employees have been laid off year-to-date, with May 2025 recording only 10,577 job cuts, less than half of the figure for the same month this year. March marked the worst month of the year so far in terms of job cuts, with over 46,000 mass layoffs reported.
Major companies such as Uber, Meta, Cloudflare, Intuit, PayPal, Cisco, Quora, and Coinbase have implemented significant layoffs. Uber, for instance, disclosed layoffs in its People and Places division, affecting 23% of that unit but less than 1% of its global workforce of around 34,000 employees. The People and Places Division of Uber oversees human resources, recruitment, workplace facilities, and culture.
Meta announced a 10% reduction in its global staff and the transition of 7,000 employees into AI-focused roles. Meanwhile, PayPal revealed plans in May to cut almost 20% of its workforce, approximately 4,760 roles, over the next two to three years to reduce costs and expedite AI adoption. Cisco, a Silicon Valley giant, announced 4,000 job cuts, equivalent to nearly 5% of its global workforce, in early May to reallocate investments into artificial intelligence, security, and related sectors.
In May, US-based software firm ClickUp downsized its headcount by 22% as part of an operational restructuring aimed at enhancing output through AI-oriented roles. Tech industry leaders have suggested that most white-collar roles relying on computers could be automated within the next 12 to 18 months. A recent report mentioned that while generative AI is not causing widespread job displacement in India’s IT sector, it is reshaping work dynamics, boosting productivity, and shifting demand towards hybrid skill sets.
