AI Driving 23% of 2026 Tech Layoffs While Entry-Level Hiring Slows

NewsData.io · United States · Oct 9, 2026

Global tech companies cut nearly 154,000 jobs in the first half of 2026, with AI cited in approximately 23% of all layoff announcements, according to multiple industry analyses. Oracle led with more than 25,000 cuts, while Microsoft, Meta, and Cognizant also made significant reductions linked to AI restructuring. However, a Resume.org survey of 1,000 U.S. hiring managers found that nearly 6 in 10 companies frame layoffs as AI-driven even when over-hiring or cost control is the real driver — a phenomenon dubbed 'AI washing.' Recruiters should note that entry-level and general IT roles face the greatest hiring slowdown, while demand is shifting toward platform engineering, data work, and AI deployment skills.