US tech layoffs hit 94,046, up 16.8%

The layoff wave has not been evenly spread. Crunchbase's tracker shows the year opened with a burst — after December 2025 cuts dropped to 5,151, January surged past 20,000 — and May alone drove much of the year-to-date increase. The recent decline, down to 2,347 in August, offers some relief, but the pattern remains bursty rather than a steady stream.

Layoffs.fyi founder Roger Lee noted that AI was cited in 33% of tech layoff events this year, up from just 1% in 2024, yet he said there is little evidence AI is actually replacing the work of those let go. Instead, established tech companies appear to be spending heavily on AI and cutting costs elsewhere, hoping to do more with smaller workforces. Andrew Challenger of Challenger, Gray & Christmas said companies are letting people go from one area while hiring in AI-focused areas, which is why a company may cut and advertise jobs at once.

Whether the recent easing holds will depend on how those spending shifts play out. Challenger sees potential upside for programmers if cheaper software development leads other industries to start projects they could not previously afford, though it is too early to know if those jobs will offset the cuts. The tracker's own methodology notes that actual layoff figures are likely much higher than reported, since many companies do not disclose the number of jobs cut.