AI, economic pressures and other causes of Big Tech layoffs

What this means for your job search: Prepare for a highly competitive market where companies prioritize candidates who can demonstrate immediate value, especially in driving efficiency or leveraging AI. Be ready to articulate how your skills directly contribute to cost savings or revenue generation. <p>Two-thirds into 2026, layoffs in the tech sector have surpassed the total of jobs cut in 2025.</p> <p>As of August, 284 tech companies have laid off 127,180 workers. Last year, 278 tech companies laid off 122,606 employees, according to <a target="_blank" href="https://layoffs.fyi/" rel="noopener">Layoffs.fyi.</a> Competing narratives swirl around Big Tech layoffs. Some executives publicly attribute the job cuts to AI, either in the name of efficiencies gained or in the hopes of getting there in the future. Skeptics cry <a href="https://www.techtarget.com/whatis/feature/AI-washing-explained-Everything-you-need-to-know">AI washing</a>. General economic pressure and a weak labor market cast a long shadow.</p> <p>This wave of layoffs is not the first. Big Tech companies cut large swaths of jobs over many different periods in the past, sparking debate. Is this wave akin to previous ones, or is it entirely different?</p> <p>As CIOs at other enterprises watch these layoffs unfold, they must <a href="https://www.techtarget.com/ai/tip/5-questions-every-CIO-should-ask-before-investing-in-AI">consider their own approach to AI investments</a> and workforce planning.</p> <section class="section main-article-chapter" data-menu-title="Tech layoffs over the years"> <h2 class="section-title"><i class="icon" data-icon="1"></i>Tech layoffs over the years</h2> <p>Various factors have driven each cycle of tech sector layoffs over the last several years. Crunchbase <a target="_blank" href="https://news.crunchbase.com/startups/tech-layoffs/" rel="noopener">tallied up</a> the approximate U.S.-based tech company layoff counts for the past several years, which are as follows:</p> <ul class="default-list"> <li>2022: 93,000</li> <li>2023: 191,000</li> <li>2024: 95,667</li> <li>2025: 127,000</li> </ul> <p>Layoffs in 2022 and 2023 came on the tail end of the COVID-19 pandemic. Tech companies cut thousands of jobs in response to <a href="https://www.techtarget.com/it-strategy/feature/IT-hirin