Tech Layoffs Top 26,000 in Early 2026 as Amazon, ASML, and Autodesk Cut Deep Despite Record Profits
The technology industry's downsizing streak has deepened in early 2026, with more than 26,000 job cuts reported across the sector since January. The reductions span companies from e-commerce to semiconductors and cybersecurity, reflecting a persistent push to streamline operations and reduce management layers — even as many of these firms post record financial results.
Amazon: 30,000 Corporate Jobs Gone
Amazon leads the tally by a wide margin, having confirmed 16,000 corporate layoffs in late January — its second mass reduction in three months. Combined with 14,000 cuts announced in October 2025, the company has now eliminated roughly 30,000 corporate roles, affecting close to 10% of its white-collar workforce.
CEO Andy Jassy has framed the reductions not as a cost play or an AI displacement story, but as a cultural reset. "It's not really financially driven and it's not even really AI-driven. It's culture," Jassy said during a third-quarter earnings call, pointing to bureaucratic bloat as the primary concern. The company posted record revenue of $716.9 billion in 2025.
ASML Cuts Despite Record Orders
ASML, the Dutch chip equipment maker that holds a near-monopoly on advanced lithography machines, announced 1,700 job cuts in late January — about 4% of its workforce. The cuts came even as ASML reported record orders and raised its 2026 sales outlook. The reductions largely target managerial positions in IT and tech departments as part of CEO Christophe Fouquet's effort to flatten the organization.
Ericsson Shrinks in Sweden
Telecom equipment maker Ericsson is shedding roughly 1,600 positions in Sweden, representing more than one in ten of its employees in the country. CEO Börje Ekholm attributed the cuts to a sluggish 5G market and warned the company expects to "continue to lower our staff numbers in the future."
Palo Alto Networks: Acquire on Monday, Fire on Tuesday
Perhaps the most striking example of the new corporate playbook came from Palo Alto Networks. The cybersecurity giant closed its $25 billion acquisition of CyberArk on February 11 and cut over 500 jobs — roughly 10% of CyberArk's 4,000-person workforce — just one day later. Research and development roles were spared, with the reductions focused on overlapping sales, operations, and administrative functions.
Autodesk Completes Its Overhaul
Autodesk announced in late January that it would eliminate about 1,000 positions, or 7% of its global workforce, as it completed a multiyear overhaul of its sales model. CEO Andrew Anagnost told employees the layoffs were "not an effort to replace people with AI" — a disclaimer that has become almost standard in 2026 layoff announcements.
The Bigger Picture
If the current pace holds, total tech layoffs in 2026 could surpass 270,000, exceeding the roughly 245,000 cuts recorded in 2025. What makes these reductions particularly notable is that they're happening at profitable, growing companies. This isn't the distressed downsizing of a downturn — it's a structural reorganization of how tech companies operate, with flatter hierarchies, fewer middle managers, and an increasing reliance on automation.
The Bottom Line
The "efficiency era" in tech shows no signs of slowing down. Whether CEOs attribute the cuts to culture, restructuring, or market conditions, the result is the same: tens of thousands of experienced tech workers looking for new opportunities while their former employers report record revenues. The disconnect between corporate profitability and workforce stability has become the defining labor story of the AI age.