Global Tech Layoffs Cross 1.63 Lakh in 2026 as AI Restructuring Hits India Hard

Global technology companies have cut more than 1,63,000 jobs since the start of 2026, and artificial intelligence is being blamed for well over half of those losses, according to a fresh industry report that also flags India as one of the hardest-hit job markets in Asia.

The findings, compiled by markets research firm TradingPlatforms, show that AI was cited as a direct factor in more than 91,000 of the layoffs recorded so far this year. The cuts have not been confined to any single corner of the technology industry. Cloud and SaaS companies account for the largest share of job losses, followed by e-commerce and online marketplaces, IT services firms, and social media platforms. Enterprise software, while a smaller slice of the total, has still seen tens of thousands of roles eliminated, with the vast majority of those cuts concentrated at US-headquartered companies.

India among the worst-hit in Asia

Outside the United States, the report points to Israel, India and Singapore as the innovation hubs absorbing the biggest share of the fallout in Asia and the Middle East. The job losses in this region span AI startups, e-commerce platforms and cybersecurity firms, reflecting how broadly the retrenchment has spread beyond the large listed technology companies that typically dominate layoff headlines.

India's exposure is amplified by the presence of large global captive centres and delivery hubs for US technology and enterprise software firms. When an American company trims its workforce as part of a broader restructuring, its India operations, often responsible for engineering, support and back-office functions, frequently bear a proportionate share of the cuts. Oracle's downsizing this year is a case in point: the company has eliminated over 25,000 roles globally since January in one of the most aggressive restructuring drives in the sector, with job losses spread across the United States, Canada, Mexico and India.

A pattern investors are rewarding, not punishing

Perhaps the more striking element of the report is how financial markets have responded to these cuts. Companies that framed their layoffs as part of a deliberate pivot toward AI have generally seen their stock prices rise rather than fall in the aftermath of such announcements. Networking major Cisco, for instance, saw its shares jump sharply after outlining plans to redirect roughly a billion dollars in restructuring costs toward its AI strategy. Workplace software company Monday.com and enterprise platform ServiceNow saw similar investor approval after linking workforce reductions to AI-related strategic shifts.

An analyst quoted in the report noted that markets increasingly treat large-scale layoffs as a signal of corporate discipline, provided the cuts are packaged as part of an AI transition rather than a sign of distress. Fewer employees, framed correctly, is now often read by investors as evidence of a sharper, more focused business rather than a shrinking one.

What it means going forward

For India's technology and IT services workforce, the report adds to a growing body of evidence that AI-linked restructuring by global clients and parent companies is a persistent, rather than temporary, feature of the current cycle. With enterprise software and cloud spending continuing to shift toward AI infrastructure and tooling, the composition of hiring and layoffs within India's technology sector is likely to keep evolving through the rest of 2026, even as overall industry revenues and deal pipelines remain healthy.

This article is an original editorial summary based on publicly reported information. It has been independently written for publication and does not reproduce content from any single source.