Over 30,000 tech jobs cut globally in first two months of 2026: Report

RationalFx report says over 80 per cent of 30,700 job cuts occurred in the US; India tops Asia with 920 layoffs as firms pivot towards AI-focused hiring

Barely two months into 2026, the tech industry is once again grappling with layoffs. Globally, more than 30,000 employees have already lost their jobs.

 

According to the latest report from RationalFx, tech companies have announced 30,700 job cuts worldwide, with 24,600, just over 80 per cent, occurring in the United States.

 

Interestingly, in Asia, India tops the list with 920 job cuts.

 

The report highlighted that the first month of 2026 has already seen a surge in layoffs, “and based on current trends, if job cuts continue at the same intensity, total reductions could reach 273,305 by year-end, surpassing 2025’s 245,000 layoffs.”

   

While last year the reasons for layoffs were automation, AI-driven job displacement and cost-cutting strategies, RationalFx said that in 2026 employers are increasingly emphasising AI expertise.

 

Layoff.fyi also states that in 2026 so far, 25,694 people have been laid off across 30 tech companies.

 

This is reflected in a recent report by LinkedIn, which stated that rapidly shifting skill requirements for today’s jobs, and an increasingly competitive but selective job market, are leaving professionals unprepared to find a new job. In India, 84 per cent of professionals feel unprepared to find a new job, even as 72 per cent say they are actively seeking a new role in 2026.

 

LinkedIn data show that applicants per open role in India have more than doubled since early 2022, intensifying competition and leaving many feeling unprepared. It is not just job seekers feeling the pressure. Nearly 74 per cent of Indian recruiters say it has become harder over the last year to find qualified talent.

 

In India, hiring by the large IT services players has been in the slow lane for a few quarters now. Traditionally known to hire in bulk from campuses, the top five IT services players, due to the uncertain macro environment, have kept their hiring targets much lower. For FY26, Infosys, the second-largest IT services firm, has continued to maintain its target of 20,000 freshers.

 

Tata Consultancy Services (TCS), the largest player in terms of revenue, has been subdued in its campus hiring, which has remained in the range of 40,000 freshers for the last two years. The firm last year also announced that it would lay off 2 per cent, or 12,000, of its employee base as it prepares to be an AI-first services player.

 

Meanwhile, a recent report by UnearthIQ said that global capability centres (GCCs), which have been expanding in India, laid off 5,500–6,000 employees in 2025. In 2026, UnearthIQ estimates layoffs would be around 4,000–5,000. The layoffs may happen due to parent-specific issues or product revamps.

 

The silver lining, of course, is that GCCs will continue to hire. “Looking ahead to calendar year 2026, around 1.2–1.4 lakh net new roles will be added in GCCs. Overall, growth is set to outpace layoffs across 1,900 GCCs, with India gaining more AI CoEs and AI-linked roles,” said a note from UnearthIQ.