With AI-driven job disruption is now spreading beyond traditional technology firms and into Wall Street, where financial giants like Morgan Stanley have begun cutting thousands of roles as artificial intelligence is steadily reducing the need for large operational teams handling manual tasks. This is outlined in a new report exploring the scale of global tech industry layoffs in 2026.
AI = job layoffs?
Mounting warnings from business leaders and economists point to artificial intelligence as a key accelerator of these layoff waves, with companies restructuring around automation, machine learning, and efficiency gains putting not only individual roles but entire job functions at risk.
To determine which companies led 2026’s biggest job cuts, the team at RationalFX compiled layoff data from multiple verified sources, including U.S. WARN notices, TrueUp, TechCrunch, and the Layoffs.fyi tracker, covering announcements made since the start of 2026.
Data shows that around 9,238, or about 20% of the 45,363 tech layoffs recorded worldwide since the start of the year, have been linked to AI implementation and organisational restructuring. The largest contributor to these reductions is the American technology firm Block (4,000 layoffs), whose CEO, Jack Dorsey, said in a post on social media that the decision was not driven by financial difficulty, but by the growing capability of AI tools to perform a wider range of tasks.
As a result, the company is significantly reducing its workforce, from roughly 10,000 employees to about 6,000, as it shifts its strategic focus more heavily towards AI.
Tech Companies With the Most Layoffs Due to AI in 2026
- Block – 4,000 layoffs
- WiseTech Global – 2,000 layoffs
- Livspace – 1,000 layoffs
- eBay – 800 layoffs
- Pinterest – 675 layoffs
- ANGI Homeservices – 350 layoffs
- Oracle – 254 layoffs
- MercadoLibre – 119 layoffs
Following last year’s restructuring at the American technology firm Block, which saw around 8% of its workforce (931 employees) laid off, CEO Jack Dorsey recently announced that the company would be reducing headcount by a further 40%, cutting 4,000 of its current 10,000 roles as part of AI-related automation and restructuring efforts. This represents the most significant wave of AI-driven layoffs so far in 2026.
Australian logistics software developer WiseTech Global announced 2,000 layoffs as part of a sweeping AI-driven restructuring programme aimed at transforming how its logistics platforms are built and maintained. Company leadership argued that advances in generative AI and large language models are dramatically increasing software engineering productivity, with executives stating that traditional approaches to writing and maintaining code are becoming increasingly obsolete.
Singapore-based home design platform Livspace has cut 1,000 jobs as part of its push to accelerate the adoption of AI across its digital interior-design marketplace. Executives have framed the layoffs as part of a shift toward a more technology-driven platform capable of delivering faster and more personalised design services to customers.
In addition, e-commerce platform eBay has also announced 800 layoffs, with the company increasingly investing in AI tools designed to automate product listings, pricing optimisation, and customer-service workflows. Social media platform Pinterest has confirmed around 675 layoffs, affecting roughly 15% of its workforce.
“This trend reflects a broader dynamic: firms are investing heavily in AI‑powered tools and infrastructure to boost efficiency, but the transition is also disrupting traditional job structures, as many entry-level positions have now become obsolete. As AI takes on more responsibilities once handled by humans, the question is no longer if jobs will change, but when and how”, says Alan Cohen, analyst at RationalFX, in the report.
