AI is driving a major restructuring in the tech industry in 2026. Unlike 2025, where brands used AI as an excuse to balance excess hirings, companies are using AI-driven automation as the major reason behind layoffs. Tech giants are sacking thousands of engineers, managers, and support staff because companies are aggressively transitioning to an ‘AI-first’ business model. According to the tracking site Layoffs.fyi, a staggering 119,494 tech professionals have been laid off across 219 firms so far this year. And the reason behind these layoffs is largely due to funding secured for expensive AI infrastructure, specialised chips, and automated workflows. Technology giants are simply slashing human headcount to fund AI.