A massive wave of layoffs continues to sweep the global tech industry in 2026, with companies repeatedly citing artificial intelligence (AI) as both a growth driver and the reason for job cuts. Most recently, Microsoft announced it is eliminating approximately 4,800 roles, or 2.1% of its global workforce. Microsoft representatives stated that the cut roles are not being directly replaced by AI, but acknowledged that this technology is fundamentally changing how work gets done and automating many everyday tasks.
Detailed Developments
According to data from Layoffs.fyi, around 120,000 tech jobs have been eliminated since the beginning of 2026. Notably, May 2026 recorded the highest single-month layoff volume in years, with AI being the most-cited reason by employers. A string of tech giants announced massive cuts: Oracle reduced its workforce by 21,000 employees (about 13%) over a 12-month period ending in June; Meta laid off 8,000 workers in May; while Intuit also eliminated 3,000 positions to refocus resources on AI. Even companies with record revenues like Cloudflare cut 20% of their workforce, primarily targeting middle management.
Technical & Technology Analysis
This workforce shift reflects a major turning point in infrastructure and software development workflows driven by automation and agentic workloads. A prime example is GitLab, which laid off 14% of its staff to fund AI infrastructure investments, preparing for system workloads projected to grow 100x. At Coinbase, the organizational structure was deeply flattened as engineering teams leverage AI tools to ship products in days rather than weeks. Meanwhile, Salesforce significantly reduced its customer support division due to the efficiency of its Agentforce AI platform in handling technical cases automatically.
Expert Opinions & Insights
Observers note that this wave of layoffs is not purely about cost-saving, but rather a radical reallocation of resources toward the AI era. Atlassian CEO Mike Cannon-Brookes shared that pretending AI doesn't change the skill mix or the number of roles required in certain areas would be disingenuous. Echoing this view, Block's Jack Dorsey stated that intelligence tools combined with smaller, flatter teams are reshaping how companies are built and run, predicting that the majority of companies will reach similar structural conclusions in the near future.
Impact & Future Outlook
For the global and Vietnamese tech communities, this trend signals a new chapter where skills in collaborating with AI are becoming mandatory. Although tens of thousands of traditional roles are being lost, hiring demand for specialized engineers in AI, silicon, optics, and cloud computing remains highly robust. The willingness of major corporations to spend hundreds of millions of dollars on severances to redirect budgets toward AI data centers indicates that this technological race will only intensify, requiring tech professionals to continuously upgrade their skills to adapt.