Tech Companies Lay Off 80,000 Employees in Q1 2026

Eighty-six technology companies laid off more than 80,000 employees during the first quarter of 2026, resulting in the worst period for tech employment in three years. Major reductions include Meta, which announced a 10% staff cut in May, and Microsoft, which offered voluntary buyouts to roughly 7% of its workforce. Other firms executing cuts include Oracle, Spotify, Quora, and Eventbrite.

While several companies cited artificial intelligence as the cause for these reductions, Sam Altman, CEO of OpenAI, and venture capitalist Marc Andreessen argued that the trend is actually a correction for pandemic-era overhiring and the pressure of rising interest rates. They suggest that AI has become a convenient justification for staff cuts.

Similarly, Tim Sweeney, CEO of Epic Games, explicitly denied that AI played a role in his company's decision to eliminate more than 1,000 positions.