# AI layoffs expose US tech’s efficiency gamble > Source: > Published: 2026-07-20 20:56:43+00:00 merican tech companies are bearing the brunt of this year's tech layoffs. About 82% of the 156,975 tech jobs eliminated globally in the first half of 2026 came from US companies, according to a new [report](https://www.tradingplatforms.co.uk/research/tech-sector-layoffs/) from TradingPlatforms, a UK-based research firm that analyzed workforce reductions using data from TrueUp.io, Layoffs.fyi, TechCrunch, and state WARN filings. Almost half of the cuts were tied to US companies restructuring around AI and automation, led by bellweathers such as Oracle, Meta, Block, Cisco, and PayPal, according to the report. Cloud computing and software-as-a-service companies recorded the highest number of layoffs globally, TradingPlatforms found. Many of those reductions came from Oracle, Microsoft, and Salesforce, among other firms. E-commerce and marketplace companies, including Amazon and eBay, were the second hardest hit. California-based companies accounted for the largest share of US layoffs among the states, followed by Texas, Washington, and New Jersey, according to the report. Compared to other sectors, tech companies are often the first to feel major economic and technological shifts because they're quicker to adopt new tools, according to Stanislava Savisheva, an analyst at TradingPlatforms. "Nearly every major technology company is currently looking for ways to operate with leaner teams, greater automation of workflows, and more efficient cost structures, with AI accelerating a shift that was already underway," Savisheva wrote in a statement. The report comes as US tech companies reorganize their workforces as they bet billions on AI. On July 6, Microsoft announced it would immediately cut about [4,800 jobs](https://blogs.microsoft.com/blog/2026/07/06/the-latest-in-our-company-transformation/), [1,600 ](https://news.xbox.com/en-us/2026/07/06/resetting-xbox/)of which were across its Xbox gaming division, as it continued ramping up AI investments. In June, Oracle disclosed that it had reduced its workforce by [21,000 employees](https://www.reuters.com/business/world-at-work/oracle-workforce-shrinks-by-about-13-2026-06-22/) over the past year to invest in AI. A month prior, Meta cut about [8,000 employees](https://www.businessinsider.com/read-meta-layoff-email-employees-2026-5), shifting thousands more workers into AI-focused roles. That same month, Cloudflare eliminated about [1,100 jobs](https://www.businessinsider.com/cloudflare-announces-1100-layoffs-amid-ai-focus-shift-2026-5) as CEO Matthew Prince said the company was preparing for the "agentic AI era." "The next phase of this transformation will not simply be about replacing jobs," Savisheva wrote, but about "fundamentally changing how businesses build teams, distribute work, and measure productivity in an AI-driven economy." ## Our Deeper *View* AI-driven restructuring is becoming the norm. But companies may want to think twice before cutting staff in anticipation of greater efficiency. Ford, for instance, recently hired more than [350 veteran engineers](https://www.thedeepview.com/articles/ford-discovers-ai-can-t-replace-deeper-expertise), some of whom were former employees, after finding its AI-powered quality systems couldn't perform on their own. At the same time, many companies are still struggling to show meaningful returns on the billions they're pouring into AI. As investors and boards push executives to justify those investments, layoffs may prove easier to announce than to live with. According to [data from PwC](https://www.thedeepview.com/articles/why-tech-companies-jumped-the-gun-on-ai-layoffs), the companies that benefit most from AI are often the ones that use it to augment employees rather than replace them.