Technology companies announced more than 12,000 job cuts in Q2 2026 as AI investment and automation accelerated.
Layoffs
August 7, 2026
Table of Contents
Technology companies announced more than 12,000 job cuts during the second quarter of 2026 as businesses reduced management layers, automated routine work and redirected spending toward artificial intelligence.
The disclosed reductions covered companies including Intuit Inc. (NASDAQ: INTU), Cisco Systems, Inc. (NASDAQ: CSCO), Cloudflare, Inc. (NYSE: NET), Wix.com Ltd. (NASDAQ: WIX), BILL Holdings, Inc. (NYSE: BILL), GitLab Inc. (NASDAQ: GTLB), Freshworks Inc. (NASDAQ: FRSH), LinkedIn parent Microsoft Corporation (NASDAQ: MSFT) and GoPro, Inc. (NASDAQ: GPRO).
Oracle Corporation (NYSE: ORCL) separately reported that its workforce declined by approximately 21,000 employees during its full fiscal year. Because that reduction was not limited to April through June, it is not included in the Q2 total.
Kyndryl Holdings, Inc. (NYSE: KD) also announced a workforce reduction but did not disclose the number of positions affected.
The largest confirmed or estimated Q2 reductions included:
Based on the available figures, the companies announced approximately 12,200 to 12,400 job cuts, excluding Kyndryl and Oracle.
The total uses qualified figures where companies described reductions as “up to,” “more than” or “fewer than” a stated number.
Intuit announced one of the quarter’s largest percentage-based reductions, cutting approximately 3,000 positions, or 17% of its global workforce.
The financial software company provides TurboTax, QuickBooks, Credit Karma and Mailchimp. Intuit said it was simplifying operations, removing organizational complexity and concentrating resources on its AI platform and other strategic priorities.
The company reported fiscal third-quarter revenue of approximately $8.56 billion. Adjusted EPS reached $12.80, exceeding expectations, although revenue came in slightly below estimates.
Intuit also reduced its TurboTax revenue outlook and estimated that the restructuring would produce approximately $300 million to $340 million in charges. Shares fell nearly 5% when the layoffs were initially reported and declined further after the company released its results and updated outlook.
Cisco said it would eliminate fewer than 4,000 jobs, representing less than 5% of its workforce.
The networking and cybersecurity company announced the restructuring alongside strong fiscal third-quarter results. Revenue increased 12% to a record $15.8 billion, while GAAP EPS rose 37% to $0.85. Adjusted EPS increased 10% to $1.06.
Cisco said the changes would allow it to redirect resources toward AI infrastructure, security, silicon and optics. The company did not provide a precise annual savings estimate, although restructuring expenses were expected to reach as much as $1 billion.
Shares rose sharply after hours, but the reaction also reflected stronger earnings, higher guidance and growing AI infrastructure orders. The entire stock movement should not be attributed to the layoffs alone.
Cloudflare (NYSE: NET)announced that it would eliminate more than 1,100 positions, representing approximately 20% of its global workforce.
The internet infrastructure and cybersecurity company said internal AI usage had increased by approximately 600% over three months, changing how teams performed routine work. Engineering and customer-facing sales positions were less affected than administrative and back-office roles.
Cloudflare reported first-quarter revenue of $639.8 million, up 34% from the prior year. Adjusted EPS was $0.25, while adjusted net income reached $94 million.
Despite the revenue and earnings beat, Cloudflare shares fell approximately 18% in extended trading. Investors appeared concerned about the scale of the restructuring and the company’s near-term outlook.
Wix announced plans to eliminate approximately 1,000 jobs, or 20% of its workforce.
The website creation and business software company employed 5,277 people before the reduction. CEO Avishai Abrahami cited the rapid development of AI and the strength of the Israeli shekel, which increased the company’s shekel-denominated expenses relative to its dollar revenue.
Wix later estimated that the restructuring would generate approximately $70 million in savings during 2026 and about $150 million in annualized savings. The company expected $30 million to $35 million in restructuring expenses, primarily for severance.
Wix shares initially declined following the announcement, reflecting concerns about its growth outlook and the business conditions that led to the reduction.
BILL announced the largest percentage reduction among the quarter’s major software layoffs.
The financial automation company said it would reduce its workforce by as much as 30% by the end of its fiscal fourth quarter. Based on its reported employee base, the plan could affect approximately 700 positions.
BILL said the restructuring would create a flatter organization and concentrate spending on fewer priorities. It expected approximately $30 million to $60 million in restructuring charges.
The company announced the plan alongside a $1 billion share repurchase authorization. BILL shares rose in extended trading as investors focused on the potential profitability benefit and capital return program.
Freshworks announced approximately 500 job cuts, representing 11% of its workforce.
The software company reported first-quarter revenue of $228.6 million, an increase of 16% from the prior year. Freshworks said AI was producing more than half of its code and helping automate routine work across the business.
The company expected approximately $7 million to $9 million in restructuring charges. It planned to reinvest part of the savings in its Freshservice employee-experience business and other AI-related products.
GitLab announced approximately 350 job cuts, or 14% of its workforce. The software development platform also said it would leave 22 countries and reduce its geographic footprint by approximately 37%.
GitLab expected $30 million to $35 million in severance, termination and retention expenses. The company reported quarterly revenue of $264.2 million, up 23% from the prior year.
LinkedIn planned to eliminate approximately 5% of its workforce, equal to about 875 positions based on its reported employee base.
The reductions affected areas including engineering, product, marketing and the company’s Global Business Organization.
LinkedIn revenue had increased approximately 12% in the preceding quarter, suggesting the restructuring was intended to redirect resources rather than respond to an immediate revenue decline.
Because LinkedIn is owned by Microsoft, the cuts were reflected as a Microsoft event. They should not be combined with separate reports about Microsoft’s Xbox, sales and consulting restructuring.
Multiple Microsoft layoff reports appeared during June, but they did not all represent separate events.
Microsoft’s reported Azure reduction in China involved approximately 200 to 400 positions. The cuts were reported in June, with affected employees scheduled to leave on July 6.
Reports published on June 11 and June 30 discussed potential cuts affecting Xbox, sales and consulting. Microsoft formally confirmed a broader 4,800-position restructuring on July 6, placing the final announcement in the third quarter.
The April voluntary retirement program also should not be counted as 8,750 layoffs. That number represented employees eligible for the offer, not the number who left Microsoft.
Kyndryl announced workforce reductions as part of a plan expected to lower annual operating costs by approximately $400 million to $500 million by fiscal 2028.
The company expected to record approximately $200 million in charges, primarily for severance and employee benefits. Kyndryl employed approximately 73,000 people at the end of March.
Kyndryl did not disclose how many positions it intended to eliminate. Estimates derived from severance expenses should not be presented as confirmed job losses.
Oracle reported that its global workforce fell to approximately 141,000 employees from 162,000 during fiscal 2026.
The decline of approximately 21,000 employees represented about 13% of its workforce. Oracle recorded $1.84 billion in severance and exit expenses, compared with $374 million in the previous fiscal year.
Oracle said AI adoption, organizational changes, acquisitions, performance decisions and strategic realignment contributed to the reduction.
Oracle’s disclosure was published during Q2, but the 21,000-person decline covered the company’s full fiscal year. It should be identified separately rather than added directly to the Q2 layoff total.
The quarter showed that workforce reductions were not automatically bullish.
Cisco shares rose after announcing job cuts, but the company also reported record revenue, stronger EPS, higher guidance and accelerating AI orders.
Cloudflare, Intuit, Wix and Kyndryl declined after their announcements or accompanying financial reports. In those cases, investors appeared more concerned about guidance, restructuring costs, slowing demand or the reasons behind the cuts than the potential savings.
The market response depended on several factors:
The Q2 layoffs showed a broad change in how technology companies were allocating capital.
Several profitable or growing businesses reduced staffing while continuing to invest in AI products and infrastructure. The cuts were often presented as organizational resets rather than emergency measures.
The largest percentage reductions came from BILL, GoPro, Cloudflare and Wix. The largest disclosed headcount reductions came from Cisco and Intuit, excluding Oracle’s full-year workforce decline.
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