IT Layoffs 2026: What's Really Happening

The headlines are relentless. Amazon cuts 16,000. Microsoft trims another 9,000. Intel slashes 33,900.

If you work in IT, you’ve probably felt that knot in your stomach during all-hands meetings. The kind where leadership talks about “right-sizing” and “strategic realignment” while you wonder if your badge will still work tomorrow.

Here’s the reality: 30,700 tech workers have been laid off in just the first six weeks of 2026. If this pace continues, the year will see 273,000 global tech layoffs—surpassing even 2025’s brutal numbers.

But here’s what the doom-scrolling won’t tell you: the IT job market isn’t collapsing. It’s restructuring. The same companies laying off workers are simultaneously hiring for different roles. The same industry that cut 245,000 tech jobs in 2025 still has a projected 3.5 million unfilled cybersecurity positions globally.

This isn’t 2008. It’s not even 2020. What’s happening now is different, and understanding the difference matters for your career.

Why This Layoff Wave Is Different

It’s Not an Emergency. It’s a Strategy.

The 2008 financial crisis triggered layoffs because companies were hemorrhaging money. The 2020 pandemic caused layoffs because entire industries shut down overnight. Companies were in survival mode.

2026 is nothing like that.

Many of the companies announcing massive cuts are profitable. Amazon posted strong earnings. Microsoft is thriving. Meta’s stock has recovered dramatically. These aren’t desperate moves—they’re calculated decisions to reshape the workforce.

RationalFX analyst Alan Cohen put it bluntly: “Tech’s 2026 layoffs are not a sign of an industry in the midst of collapse; they’re a sign of recalibration… AI is no longer just a growth story; it’s a cost-reduction tool.”

The Post-Pandemic Hiring Hangover

Between 2019 and 2022, tech companies went on a hiring binge. Some nearly doubled their headcount. IBM’s CEO called it companies “gorging on employment.” The logic at the time seemed sound: pandemic-driven digital transformation was permanent, and the talent war was fierce.

Then the growth projections didn’t materialize. Interest rates rose. The “growth at all costs” mindset shifted to “show me the profits.” Amazon’s 16,000 cuts in January 2026 explicitly targeted bureaucratic bloat accumulated during the COVID-era expansion.

AI Is Both Overhyped and Underestimated

AI was directly cited as the cause of 55,000 U.S. layoffs in 2025. In January 2026 alone, 7,624 job cuts specifically mentioned AI adoption as the reason.

But it’s complicated. Some analysts argue AI is being used as a “corporate scapegoat”—a convenient narrative that sounds forward-thinking while obscuring more mundane reasons like margin pressure and slowing demand. The truth is probably both: AI is genuinely changing which roles companies need while also providing convenient cover for cuts that would have happened anyway.

Who’s Getting Hit Hardest

The Vulnerable Roles

According to Indeed’s Tech Talent Report and industry analysis, certain roles face disproportionate risk:

Software Engineers (Especially Junior)

Microsoft reported that 40% of its recent layoffs hit developers. AI coding assistants like GitHub Copilot and Claude Code are making individual engineers more productive—which means companies need fewer of them to accomplish the same output. Entry-level positions are most vulnerable because they handle the routine tasks AI excels at automating.

This doesn’t mean learning to code is pointless. But the bar is rising. Junior developers who can’t do more than translate requirements into basic code are competing against tools that do exactly that.

QA Engineers and Manual Testers

Software companies reported a 47% reduction in manual QA testers. Automated testing frameworks and AI-powered test generation have made traditional manual testing obsolete at scale.

Product and Project Managers

Administrative coordination roles are being squeezed as AI tools streamline workflows and companies demand leaner operations. If your primary contribution is scheduling meetings and updating status reports, you’re exposed.

Help Desk and Tier-1 Support

Entry-level IT help desk roles declined 22% where AI troubleshooting bots were deployed. These positions face a 49% automation risk. That doesn’t mean help desk is dead—someone still needs to handle complex issues and maintain the human element—but the volume of entry-level positions is shrinking.

The Geographic Pain Points

Layoff impact varies dramatically by location:

City	Workers Impacted (2026 YTD)
Seattle	16,590
San Francisco	4,446
Menlo Park	1,500

Seattle’s disproportionate hit stems almost entirely from Amazon’s cuts. If you’re in a city dominated by a single large employer, your local job market is more fragile than it appears.

What’s Actually Safe (For Now)

While some roles contract, others can’t hire fast enough. The same ISC2 Cybersecurity Workforce Study that tracked layoffs found that 95% of cybersecurity teams have critical skills gaps.

Cybersecurity Remains Bulletproof

Job postings for cybersecurity roles doubled from 2% to 4% of all tech postings between 2024 and 2025. The Bureau of Labor Statistics projects 29% job growth by 2034—one of the fastest of any profession.

There are currently 3.5 million unfilled cybersecurity positions globally. Companies are cutting software engineers while desperately searching for security analysts. If you’re considering a transition, the window remains wide open. Our cybersecurity careers topic hub covers the full landscape of options.

AI/ML Engineers Are Hiring, Not Firing

The irony is thick. AI is causing layoffs in some roles while creating explosive demand for others. Generative AI job postings grew 220% year-over-year. AI security engineers command salaries of $152K-$280K with minimal competition for roles.

Cloud Architects and DevOps

Cloud skills remain in high demand. Google Cloud skills appear in 5% of postings (up from 3%), and AWS certifications continue to open doors. Companies are cutting middle management while expanding cloud infrastructure teams.

Data Engineering

CompTIA projects 414% growth for data scientists through 2035. As AI systems become central to business operations, the engineers who build and maintain data pipelines become more critical, not less.

The Survival Playbook

Here’s what actually helps—and what doesn’t.

What Works: Becoming Visibly Indispensable

When layoff decisions happen, leadership typically asks: “Who do we absolutely need to keep?” The safest employees are the ones whose contributions are known and valued across the organization—not just by their direct manager.

This means:

• Document your impact in measurable terms. “Reduced ticket resolution time by 30%” beats “handled support requests.”
• Present your work cross-functionally. If only your immediate team knows what you do, you’re more expendable than you think.
• Solve problems others can’t. Specialization in critical systems creates natural job security.

What Works: Building AI-Adjacent Skills

You don’t need to become an AI researcher. You need to demonstrate you can work alongside AI tools effectively.

For non-technical workers: Google’s AI Essentials certificate, Microsoft AI-900, and similar entry points show you understand the basics.

For technical workers: AWS Cloud Practitioner, applied ML certifications, and hands-on experience with AI tooling in your domain. If you’re a sysadmin, learn how AI monitoring tools work. If you’re a developer, understand prompt engineering and AI-assisted coding workflows.

The goal isn’t to become an AI expert. It’s to not look like someone who will struggle when AI tools become standard issue.

What Works: Network Maintenance (Before You Need It)

Up to 80% of jobs are found through networking. The time to build those connections is not when you’re already laid off.

Practical steps:

• Attend tech meetups and webinars regularly
• Engage meaningfully on LinkedIn (sharing insights, not just scrolling)
• Reconnect with former colleagues proactively
• Maintain relationships with recruiters even when you’re not looking

What Doesn’t Work: Assuming Your Company Won’t Do It

Profitable companies are laying off workers. Companies that called themselves “family” are laying off workers. Companies that issued statements condemning other companies’ layoffs are now laying off workers.

Loyalty is great, but financial planning shouldn’t depend on it. Keep your resume updated, your skills current, and your network warm—regardless of how secure you feel.

What Doesn’t Work: Grinding Harder Without Strategy

Working longer hours won’t protect you if leadership doesn’t know who you are or what you contribute. Burnout won’t be rewarded with job security. If you’re already stretched thin, managing your workload sustainably matters more than logging extra hours nobody notices.

The worst position: being exhausted and expendable at the same time.

Reading the Warning Signs

Companies rarely announce layoffs without signals appearing first. Watch for these patterns:

Hiring Freezes That Stick

A temporary hiring pause is normal during budget cycles. A freeze that extends beyond one quarter, especially when competitors are still hiring, often precedes cuts.

Leadership Departures at Senior Levels

When VPs and directors start leaving voluntarily—particularly to competitors or startups—they may have seen internal plans you haven’t. Pay attention to who’s jumping ship and why.

Reorganizations Without Clear Purpose

“Flattening the organization” and “reducing layers” sound positive. In practice, they often mean eliminating management roles and consolidating teams—which reduces headcount.

New Cost-Cutting Language

When “efficiency” and “optimization” become recurring themes in all-hands meetings, take note. If you hear phrases like “doing more with less” or “focusing on core priorities,” leadership is preparing the ground for cuts.

Your Projects Getting Deprioritized

If the work you’re doing suddenly becomes “nice to have” instead of essential, your position may follow. Teams working on experimental initiatives or non-revenue-generating projects face higher risk.

None of these guarantee layoffs. But if multiple signals appear simultaneously, it’s time to accelerate your contingency planning.

The Recovery Reality

Here’s the silver lining in the data: 65% of tech workers laid off in 2023 found new roles within six months, according to a 2024 ZipRecruiter report. 74% remained in the tech industry; the rest moved to retail, financial services, or healthcare.

The job market is challenging but not impossible. Several patterns emerge from successful transitions:

Lateral Moves with Skill Additions

Rather than competing for the same role at a different company, successful pivots often involve adding a new skill dimension. A cloud engineer adds AI ethics expertise and lands at a responsible ML startup. A project manager learns agile coaching and moves into a more secure hybrid role.

Industry Diversification

Tech skills translate to healthcare, financial services, manufacturing, and clean energy. These sectors are actively recruiting technologists and face less competition than pure tech companies. Your IT skills transfer more broadly than you might assume.

Healthcare IT, in particular, offers stability that pure tech companies don’t. Hospitals and health systems don’t have the same boom-bust hiring cycles as startups. Financial services firms are expanding their tech teams even as they cut other departments. If you’re considering a career shift, non-tech industries with growing tech needs may offer better long-term security than trying to land at another FAANG company.

Upmarket Pivots

Counterintuitively, some laid-off workers land higher-paying roles. When forced to job search, they negotiate more aggressively or target positions they wouldn’t have pursued while comfortably employed. One senior robotics manager took six months, overhauled his resume, and landed at higher compensation than before.

Skills to Build Now

The IT skills shortage is projected to cost organizations $5.5 trillion in losses globally by 2026—a paradox where traditional IT roles are cut while critical modern roles go unfilled.

High-Demand Skills	Growth Indicator
Cybersecurity	29% projected job growth by 2034
AI/ML Engineering	220% YoY growth in Generative AI roles
Cloud Computing (AWS, Azure, GCP)	Google Cloud in 5% of postings (up from 3%)
CI/CD / DevOps	Skills grew from 7% to 9% of postings
Data Engineering	414% projected growth through 2035

If you’re looking to build practical skills, platforms like Shell Samurai offer hands-on Linux and security practice that directly translates to DevOps and cybersecurity roles. HackTheBox and TryHackMe provide security-specific training environments.

For certifications that hiring managers actually value: CompTIA Security+, AWS certifications, and Azure fundamentals remain strong signals on resumes. If budget is a concern, there are legitimate ways to get certified for a fraction of the cost that most people don’t know about. See our IT certifications topic hub for a full breakdown of options.

The key is building skills that complement, rather than compete with, AI. Learning Linux administration and command-line proficiency provides a foundation for cloud and DevOps work that remains highly valued.

What About the Return-to-Office Connection?

It’s worth noting that layoffs and return-to-office mandates often correlate. Companies pushing aggressive RTO policies—Amazon, Dell, Meta—have also announced significant cuts. Some analysts suggest RTO mandates serve as “soft layoffs,” encouraging resignations from employees who prefer remote work.

If you’re seeking remote work, mid-size and remote-first companies may offer more stability than Big Tech’s hybrid policies. The largest companies are pulling workers back; smaller employers are using remote flexibility to attract talent the giants are pushing away.

The Uncomfortable Bottom Line

The IT job market in 2026 is neither apocalyptic nor comfortable. The old playbook—get a CS degree, land at Big Tech, coast on stock options—is breaking down. But the new playbook isn’t impossible to follow.

The professionals who thrive will be those who:

• Build skills in growth areas (security, AI, cloud) rather than contracting ones
• Maintain visibility and measurable impact within their organizations
• Keep their networks active and their options open
• Accept that loyalty won’t be reciprocated and plan accordingly

You can’t control whether your company announces layoffs next quarter. You can control whether you’re the indispensable expert or the redundant headcount when that meeting happens.

The restructuring will continue. Position yourself on the right side of it.

Frequently Asked Questions

Are IT layoffs going to continue through 2026?

Current trends suggest yes. January 2026 saw 108,435 job cut announcements—a 118% increase versus January 2025 and the highest January since the 2009 financial crisis. Analysts predict the restructuring will continue as companies integrate AI and unwind pandemic-era over-hiring.

Which IT roles are most secure right now?

Cybersecurity, AI/ML engineering, cloud architecture, and data engineering face minimal layoff risk. These roles have more open positions than qualified candidates. Cybersecurity alone has 3.5 million unfilled positions globally.

Should I be worried if I’m in a junior developer role?

Cautious awareness is warranted. Junior software engineering roles face disproportionate cuts as AI tools increase senior developer productivity. Consider building specialization in high-demand areas (cloud, security, ML) or moving toward roles with more direct business impact.

How long does it typically take laid-off IT workers to find new jobs?

Data from previous layoff waves shows 65% of tech workers found new roles within six months. Success correlates with in-demand skills, strong networks, and willingness to consider adjacent industries or role pivots.

Is AI really the main cause of IT layoffs?

It’s a contributing factor, but not the whole story. AI was explicitly cited in 55,000 U.S. layoffs in 2025. However, post-pandemic over-hiring, rising interest rates, and strategic restructuring are equally significant drivers. AI provides convenient corporate messaging that sounds forward-thinking while obscuring multiple root causes.