Artificial intelligence is linked to approximately 20% of the 45,363 tech layoffs globally in 2026, with companies like Block leading the way as they reorganise around AI-driven workflows, impacting traditional roles and potentially extending beyond the tech sector. Picture: ChatGPT
Image: ChatGPT
Artificial intelligence is increasingly being linked to job cuts across the global tech industry, with new data suggesting that around one in five layoffs this year are connected to companies adopting AI tools.
According to a new report from financial research firm RationalFX, about 9,238 of the 45,363 tech layoffs recorded worldwide in 2026 so far — roughly 20% — are tied to artificial intelligence and organisational restructuring.
The figures were compiled using data from several verified sources, including U.S. WARN notices, TrueUp, TechCrunch and the Layoffs.fyi tracker.
The biggest contributor to AI-related job cuts so far is the American technology company Block, which has announced 4,000 layoffs this year. CEO Jack Dorsey said the cuts were not driven by financial trouble, but by the growing ability of AI tools to handle tasks that previously required large teams.
Companies with the most AI-related layoffs in 2026 so far include:
• Block – 4,000
• WiseTech Global – 2,000
• Livspace – 1,000
• eBay – 800
• Pinterest – 675
• ANGI Homeservices – 350
• Oracle – 254
• MercadoLibre – 119
While tech companies are continuing to post strong retyrbs, analysts say the industry is rapidly reorganising around AI-powered workflows. That shift is reducing the need for some traditional roles, particularly entry-level operational jobs.
Experts warn that if the current pace of layoffs continues, the impact could extend beyond the tech sector as more industries adopt automation.
Alan Cohen, an analyst at RationalFX, says the trend highlights how quickly AI is reshaping the job market.
“Even as companies post record revenues, the tech sector is being fundamentally reshaped by AI, with firms reorganising around more efficient, technology-driven workflows,” he said.