The Era of AI: Mass Layoffs at Global Tech Companies in 2026

The global technology market is undergoing a period of significant transformation in 2026. Despite record-breaking revenues, major IT giants continue to implement mass layoffs. The rapid integration of AI technologies is cited as the primary driver of this process. According to Layoffs.fyi, more than 120,000 employees in the sector have lost their jobs this year alone. This is reported by Techcrunch.com reports .

Microsoft announced on Monday that it would cut 2.1 percent of its global workforce, approximately 4,800 positions. While company leadership emphasized that these roles are not being directly replaced by AI, they acknowledged that artificial intelligence is changing workflows and automating many routine tasks. This trend is spreading like an "epidemic" across the entire industry.

The situation at major companies and the AI factor

According to a report released by Oracle at the end of June, the company has laid off 21,000 employees over the last 12 months. In its annual financial report, the company openly stated that implementing AI technologies into operational processes may lead to further workforce reductions in the future. This serves as a significant signal for developing markets like Uzbekistan, highlighting which skills will be in high demand in the future labor market.

Google (Alphabet) is no exception to this process. The company is optimizing its workforce in its Cloud division, even as revenues have increased by 63 percent. Unlike other companies, Google chose a path of gradual layoffs rather than announcing a single large figure. It is estimated that up to 3,000 engineers were laid off in 2026.

• Meta: Laid off 8,000 employees, but reassigned 7,000 people to new AI initiatives.
• Cisco: Despite revenues exceeding expectations, the company cut 4,000 jobs to redirect resources toward AI and cybersecurity.
• GitLab: Parted ways with 14 percent of its staff to invest in AI infrastructure.
• Intuit: Laid off 3,000 people to reduce complexity and focus on AI products.

The paradox of economic growth and unemployment

According to analysis by the consulting firm Challenger, Gray & Christmas, May was the month with the highest number of layoffs in recent years, with AI cited as the most common reason. Although Cloudflare recorded the highest quarterly revenue in its history ($639.8 million), it decided to lay off 20 percent of its staff.

Experts believe that technology companies are streamlining their structures after the excessive expansion during the pandemic. This process is not only about cost-cutting but also about mobilizing company resources for the AI race, which is the main driver of the future. This requires professionals in the global labor market to have even greater skills in working with new technologies.