The global technology industry has shed more than 163,000 jobs since the start of 2026, with artificial intelligence (AI) emerging as one of the biggest drivers of workforce restructuring, according to a new analysis by investment research platform TradingPlatforms.
Key Highlights
- Global tech layoffs reached 163,427 in 2026.
- Enterprise software firms accounted for 13,308 job cuts.
- AI cited as a factor in 91,215 layoffs worldwide.
- Cisco led enterprise software layoffs with 4,000 job cuts.
- Investors rewarded several firms despite workforce reductions.
The report, compiled by TradingPlatforms using data from layoff trackers including TrueUp and TechCrunch, as well as Worker Adjustment and Retraining Notification (WARN) filings, found that enterprise software companies have become one of the hardest-hit segments of the technology industry.
The study shows that enterprise software firms announced or implemented 13,308 layoffs during the year, representing 8.14 per cent of all technology job losses. The sector ranks fifth among the industries most affected, behind Cloud and SaaS (37,492 layoffs), E-commerce and Marketplaces (22,633), IT Services (16,756), and Social Media (13,592).
Among the latest companies to announce workforce reductions is ServiceNow, which plans to eliminate up to 1,000 positions, representing approximately three per cent of its global workforce. The announcement came shortly after the company reported a 24 per cent year-on-year increase in second-quarter revenue to $3.99 billion, while its AI business surpassed $1 billion in annual contract value.
The report found that U.S.-based companies accounted for 11,792 of the 13,308 enterprise software layoffs, or nearly 89 per cent of the global total.
Cisco recorded the highest number of layoffs in the sector with 4,000 positions, followed by Amdocs with 2,900 and Autodesk with 1,000.
Israel ranked second, recording 660 layoffs across two companies. Workplace software company Monday.com announced plans to cut around 20 per cent of its global workforce, approximately 620 employees, as part of a restructuring centred on its AI Work Platform.
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Legal technology firm Darrow also reduced its workforce by 60 employees, including 40 in Israel, affecting about one-third of its staff.
In Canada, OpenText cut around 400 jobs, representing two per cent of its global workforce, while stressing that the impact on its Canadian operations remained limited.
Europe recorded 456 enterprise software layoffs, led by Amsterdam-based Elastic, which cut 280 jobs, and German software company Staffbase, which laid off 176 employees as part of business restructuring.
The report also found that 91,215 of the 163,427 global tech layoffs announced this year were directly linked to AI-related restructuring.
Cisco said roughly $1 billion in restructuring costs would be redirected toward its AI strategy, while Monday.com described its workforce reduction as part of its transition to an AI-first operating model. ServiceNow’s restructuring also coincided with rapid expansion of its AI business.
Despite the job cuts, financial markets reacted positively. Cisco shares surged 17 per cent in after-hours trading, Monday.com gained 2.3 per cent, while ServiceNow’s shares climbed approximately nine per cent in the days following its announcement.
Commenting on the trend, Stanislava Savisheva, an analyst at TradingPlatforms, said investors increasingly view AI-driven restructuring as a sign of strategic discipline rather than financial weakness.
“Not long ago, companies announcing thousands of layoffs were viewed as being in trouble. Today, markets increasingly interpret AI-related workforce reductions as evidence that management is repositioning for future growth,” she said.
She noted that Wall Street now appears willing to reward companies that reduce headcount if the savings are directed toward artificial intelligence and emerging technologies.
The report concludes that while workforce reductions remain painful for employees, AI is fundamentally reshaping business priorities across the technology sector, with companies increasingly investing in automation, AI infrastructure and digital transformation rather than expanding traditional workforces.
