"Not every layoff is a result of AI, and not every advertised position is already closed."

Nearly 200,000 Jobs Under Pressure: Why Global Companies Are Cutting Employees in 2026

Amazon announced the layoff of 16,000 corporate positions, Meta plans to release about 8,000 employees, and American Express will reduce its workforce by approximately 3,500 people. Artificial intelligence, automation, and the drive for lower costs are changing the structure of large companies. However, not every layoff is a result of AI, and not every announced position has already been closed.

In 2026, the global labor market is facing yet another massive transformation. Tech giants, financial institutions, and multinational companies are restructuring their teams, eliminating management levels, and redirecting resources to new business directions. At the center of this change, artificial intelligence is increasingly prominent, but there are other factors behind the decisions: overlapping functions, acquisitions, changes in demand, cost pressures, and new investor expectations.

According to data from the tech market tracker TrueUp, as of October 27, 2026, there have been 196,573 affected employees reported during the year across 668 events related to layoffs in tech companies. This is approximately 655 people daily. In comparison, for the entire year of 2025, the tracker reported 245,953 affected employees. It is important to clarify that the data covers the tech sector, not the entire global economy, and includes announced layoffs that are not necessarily finalized.

Amazon: 16,000 Fewer Corporate Positions

In January, Amazon announced plans to cut around 16,000 corporate positions. The decision continues the restructuring that began the previous year, aimed at streamlining the organization, reducing bureaucracy, and eliminating unnecessary management levels.

This is one of the most significant examples of change in the structure of a large tech company in 2026. Amazon continues to invest in technological infrastructure and artificial intelligence while simultaneously reassessing the necessary number of employees and how work is distributed.

However, layoffs do not automatically mean that all affected functions are being replaced by AI. Part of the change is related to the management structure and the company's desire to operate with fewer organizational levels.

Meta: Fewer Employees and Greater Focus on AI

Meta is among the companies that are rearranging their priorities in the context of an accelerated race for artificial intelligence development. In April, the company announced plans to cut about 8,000 employees, or approximately 10% of its workforce, as well as to forgo filling about 6,000 open positions.

The decision is related to the need for the company to direct more resources toward its strategic priorities, including AI development. Thus, Meta demonstrates how an organization can continue to invest aggressively in technology while reducing the number of employees in other parts of the business.

This is an important distinction: investments in AI do not necessarily mean that the entire company is shrinking. It is possible for some teams to be downsized while others expand, as the necessary skills and business priorities change.

Microsoft: Voluntary Departure as a Restructuring Tool

On October 26, Reuters reported that Microsoft is offering voluntary severance packages to approximately 60,000 employees — more than a quarter of its global workforce. The company states that the goal is to provide an opportunity for some employees to leave with support while simultaneously adapting the organization to changing needs.

As of June 30, 2026, Microsoft had 223,000 full-time employees worldwide. Therefore, the voluntary departure proposal encompasses a significant portion of the staff, but does not mean that 60,000 people have already been laid off or that everyone will accept the offer.

The decision comes against the backdrop of massive investments in AI infrastructure. According to Reuters, Microsoft has forecasted capital expenditures of $175 billion for the calendar year 2026. The company needs to finance data centers, chips, and other technological resources, while investors are looking for evidence that these investments will yield sufficient returns.

This is a telling example of the new corporate logic: simultaneously building infrastructure for the future and reassessing the necessary human resources.

American Express: 3,500 fewer jobs despite strong financial results

The change is not limited to technology companies. On October 23, American Express announced plans to eliminate around 3,500 jobs globally — approximately 5% of its workforce.

The news attracted attention because the company simultaneously raised its profit forecast for 2026 and announced a restructuring aimed at a more flexible and efficient organization. According to Reuters, the company's card spending increased by 8% during the quarter, and the financial results exceeded analysts' expectations.

This example shows that large layoffs are not always a sign of an immediate financial crisis. Sometimes companies reduce staff precisely when their results are good, as they seek to improve efficiency, change the organizational structure, or redirect resources to future priorities.

Barclays: the financial sector is also changing its structure

The British bank Barclays announced plans to cut 5,000 jobs as part of a cost-reduction program. According to Reuters, the initiative is related to increasing operational efficiency, with the development and implementation of artificial intelligence being part of the broader context of change.

This is an important signal for the financial sector. Banking operations involve numerous repetitive processes — document processing, checks, data analysis, and administrative tasks. Some of these tasks can be automated or performed with less manual labor.

However, technology is not the only explanation for every layoff. In banks, decisions can also be influenced by organizational changes, results of individual business lines, and pressure for higher profitability.

More companies reducing their workforce

Examples of significant layoffs in 2026 also exist outside the largest tech brands. According to published data from WorkforceSignal and Reuters:

Block — over 4,000 positions. The fintech company announced a large-scale restructuring, with artificial intelligence being part of the strategy for a more efficient organization.

Microsoft — around 4,800 positions have been reported in tech trackers for individual layoffs throughout the year, prior to the October news of voluntary compensation packages. This figure should not be confused with potential departures under the new program.

Intuit — about 3,000 positions. The company is restructuring its teams and reallocating resources to priority areas, including AI. Public explanations for the reasons behind the layoffs do not support the unequivocal claim that all of them are a result of replacing employees with artificial intelligence.

Uber — approximately 3,300 positions according to tracked reports of layoffs throughout the year. The restructuring includes reducing management levels and streamlining the organization.

Visa — about 2600 positions according to industry tracking, as the company links changes in organization and work methods to the broader adoption of AI.

Atlassian — approximately 1600 positions, as the company shifts its priorities and increases focus on artificial intelligence and corporate clients.

These numbers are gathered from public announcements and industry trackers. They may vary depending on methodology, reporting period, and whether planned, announced, or already realized layoffs are included. They should not be mechanically aggregated with the overall values of the trackers, as there may be overlaps.

Is artificial intelligence the main reason?

Artificial intelligence is already part of the explanation for a number of layoffs, but it is not a universal reason for every decision. WorkforceSignal's analysis reports around 112,000 affected employees in 133 major tech events in 2026 and indicates that 41% of the affected jobs in its sample are related to AI according to company explanations or reliable media publications.

This percentage does not mean that artificial intelligence has necessarily replaced 41% of employees. The category also includes layoffs explained by the redirection of investments towards AI, automation, or expected improvements in efficiency. Furthermore, WorkforceSignal tracks selected major events, while TrueUp covers a broader range of tech layoffs and reports a significantly higher overall number. The difference between the two sources highlights why it is important to clarify methodology when presenting labor market statistics.

The practical question for companies is no longer just which tasks can be automated. It is how teams should look when part of the work is performed by AI tools, when one employee can perform more tasks, and when some skills lose value while others become critical.

This may lead to the elimination of positions, but also to the creation of new roles. Therefore, layoffs should be considered alongside investments in technology, hiring specialists, and changes in required competencies.

What does this mean for employees and HR leaders?

For employees, the trend is a warning that job security can no longer be solely based on tenure, position, or employer reputation. Greater importance is placed on the ability to learn, adaptability, working with new technologies, and the skill to make decisions in situations that cannot be reduced to a standard procedure.

For HR leaders, the challenge is more complex than just cutting costs. They need to understand which competencies will be necessary in two or three years, how to redirect employees to new roles, and how to maintain trust in the organization during restructuring.

The way a company communicates layoffs, supports affected individuals, and explains its future strategy is also part of its employer reputation. Financial efficiency and employee relations are not necessarily opposing goals. In the long term, trust, transparency, and development opportunities influence the organization's ability to attract and retain the necessary specialists.

Fewer jobs or a different work model?

Layoffs in 2026 show that corporate change is no longer limited to the tech sector. Banks, financial companies, and international employers are also reassessing the number of employees, management levels, and task distribution.

Some positions are eliminated due to automation. Others are removed due to restructuring, overlapping functions, or changes in business strategy. At the same time, companies are investing significant resources in infrastructure, AI products, and new competencies.

Therefore, the most important question is not just how many employees will be laid off. It is what the work model will be in companies that want to remain competitive in the coming years.

Artificial intelligence can make organizations more productive, but that does not automatically mean that the benefits will be distributed evenly between businesses and employees. The outcome will depend on management decisions, investments in skills, and the willingness of companies to create new opportunities for people whose current roles are changing.

One thing is clear: by 2026, the question is no longer just whether AI will change work. The question is which companies will succeed in changing their work without losing the people and competencies they will need tomorrow.

Almost 200,000 jobs under pressure: why global companies are laying off employees in 2026.