Global tech layoffs rise sharply in 2026, blamed on AI

In Short:
– Atlassian plans to cut 1,600 jobs, around 10% of its workforce, to boost AI-driven sales.
– Tech layoffs increased significantly in Australia in 2026, with WiseTech Global cutting 30% of its staff.

The number of tech layoffs is increasing sharply, as bosses blame the rise of AI use for the decision to let go of staff.

Australian-American software company Atlassian announced a plan to cut 10% of its workforce, approximately 1,600 positions, to enhance its AI-driven sales strategy.

Alan, a data analyst at personal finance platform RationalFX, reports on significant layoffs in the tech industry.

Tech layoffs escalate

Warnings from business leaders indicate that artificial intelligence is accelerating layoffs, with restructuring around automation endangering entire job functions.

RationalFX compiled data from sources like U.S. WARN notices and the Layoffs.fyi tracker to highlight which companies made the most significant cuts in 2026.

Tech layoffs in Australia rose sharply in early 2026, with 4,450 positions eliminated already, compared to 874 in all of 2025.

WiseTech Global faced the largest cuts, reducing its workforce by 30%, impacting around 2,000 employees to focus on automation and AI.

Other companies implementing notable layoffs include Atlassian, Telstra, and Envato.

U.S. leads layoffs

As of 13 March, tech layoffs globally reached 48,163, with Amazon and Block accounting for the most significant contributions.

Despite downsizing, many tech companies are achieving record revenues; for instance, Amazon reported $716.9 billion in revenue while cutting 16,000 jobs.

Sydney recorded 3,600 layoffs in 2026, ranking third among cities for tech job losses, following Seattle and San Francisco.

Analyst Alan Cohen states that the ongoing layoffs reflect a transition in the tech sector towards AI and automation.

The trend highlights strategic pivots by companies responding to evolving market pressures and technological advancements.