AI Layoffs Hit 142,000 in 2026 as Big Tech Cuts Staff to Fund Infrastructure

[Rory_39]

Tech layoffs in 2026 have reached 142,000 according to tracking data cited across multiple industry reports this week, and the pattern is different from previous tech downturns. Microsoft has committed to 190 billion dollars in capital expenditure this year, Google is at 175 to 185 billion, and Amazon is running custom silicon programs at a 20 billion plus run rate. OpenAI's Stargate joint venture is targeting ten gigawatts of computing capacity. These companies are not cutting headcount because business is bad. They are cutting headcount to fund compute investments that are orders of magnitude larger.

The workers most affected are support roles, content moderation teams and middle management layers. Engineering headcount is largely flat or growing, particularly in AI-adjacent roles. The IMF has warned specifically about an AI shock to entry-level jobs and that appears to be exactly what is happening. The specific roles that historically served as career entry points into tech companies are being cut at the highest rates because they are the most susceptible to automation by the very AI systems these companies are building.

The structural story is uncomfortable for the industry. AI companies are publicly building tools that will eliminate jobs while simultaneously eliminating jobs to fund those tools. The circular nature of this is not lost on labour advocates. What is less clear is whether the jobs being eliminated lead to net job creation elsewhere in the economy as AI productivity gains create new activities, or whether this is the beginning of a more sustained structural shift in employment.

The running list: major tech layoffs in 2026 where employers cited AI | TechCrunchtechcrunch.com