30,000 Tech Jobs Displaced in 2026 Due to AI Disruption

The tech sector is facing a wave of job cuts in 2026, with around 30,000 positions impacted so far. Experts say that artificial intelligence is accelerating changes in the industry, affecting not only IT companies but also other tech-driven roles. Data shows that automation and AI adoption are reshaping workforce needs, leaving many employees vulnerable to layoffs. Concerns over Artificial Intelligence (AI) disrupting jobs have intensified in early 2026 as companies across the world move from pilot projects to large-scale deployment of automation tools. Recent layoffs by global corporations have brought the debate into sharper focus. Payments firm Block said it is laying off more than 4,000 employees, or about half of its headcount. The company said the move would help it operate with smaller teams using AI to automate more work. Its shares surged over 24 per cent in extended trading after the announcement. IT Sector Layoffs 2026 Data compiled by Layoffs. fyi shows that 29,570 tech employees have been laid off by 45 tech companies so far in 2026. In 2025, about 124,201 tech employees were laid off across 271 companies. The layoffs are not limited to smaller firms. Companies such as Amazon, Meta, HP Inc, Allianz and Dow have announced job cuts linked to restructuring, automation and AI integration. In India, Australia and Europe, several firms have cited AI-driven efficiency programmes as part of workforce rationalisation plans. Global brokerage Goldman Sachs warned that accelerating AI adoption could push US unemployment higher this year. Its economists estimated that AI was responsible for 5,000 to 10,000 monthly net job losses in the most exposed US industries last year and accounted for 7 per cent of total planned layoffs in January. Against this backdrop, fears have risen sharply in India’s IT sector. The IT index fell 24 per cent in February and hit a two-and-a-half-year low amid concerns that AI-based coding tools and automation platforms could reduce demand for traditional IT services such as outsourcing, maintenance, testing and managed services. But is AI a structural threat to IT jobs, or is the sector going through a transition? What official data says A report by NITI Aayog titled “Roadmap for Job Creation in the AI Economy”, released in October 2025, presents both risks and opportunities. The report says that in a worst-case scenario, headcount in the tech services sector could decline from 7.5–8 million in 2023 to 6 million by 2031. In the customer experience (CX) sector, employment could fall from 2–2.5 million in 2023 to 1.8 million. It also cites data suggesting that over 60 per cent of formal sector jobs are susceptible to automation by 2030, especially in IT and BPO. However, the report adds that whether the industry becomes a net job creator or a net job loser will depend on the actions taken by companies and policymakers. It identifies new growth areas such as AI in drug discovery, predictive maintenance systems, demand-based supply planning in manufacturing, convergence of Internet of Things and AI, quantum computing research, AI DevOps and expansion of Global Capability Centres. The report also lists emerging roles including data centre controllers, AI marketing specialists, ethical AI specialists, sentiment intelligence analysts, quantum machine learning engineers and advanced AI research scientists. Why is the fear rising Industry experts say the immediate risk is higher for repetitive and low-skill roles. Harsh Makwan, CEO of Hypernext Data Centre, said repetitive customer service and back-office tasks can be automated using agent-based AI systems. This could directly affect BPO revenues, which form a large part of cash flows for many IT firms. He said building strong AI capabilities requires investment and time, and large Indian IT companies have so far not demonstrated breakthrough AI products. If traditional revenues slow, short-term investments in AI could also be affected. Entry-level roles that involve basic coding, testing and support functions may face pressure as AI tools improve coding speed and automate routine tasks. Why experts say IT will not disappear Despite the risks, experts do not see a collapse of the IT sector. Dr Ganesh Natarajan, Founder of 5F World, said AI will change operating models but not eliminate growth. He said enterprise systems are complex and built over decades. Even if AI tools can generate code or modernise parts of systems, companies still need experts to redesign processes, integrate AI tools and monitor performance. According to him, growth may remain weak for the next three to four quarters as companies adjust. Business models could change within six to seven quarters. Companies that adapt quickly may return to steady growth, though not at earlier peak rates. Sanskar Arora, AI expert at Dexian India, said market reactions appear driven by panic rather than structural decline. He said previous technology shifts, such as cloud computing and di