The tech industry continues to grapple with significant workforce adjustments as 2026 kicks off, with over 3,200 U.S. tech workers already impacted this week, signaling that the belt-tightening trend observed over the past four years shows no signs of abating.

VR Sector Takes Week’s Layoffs Biggest Hit As Meta Reality Labs And Cloudhead Games Make Cuts

It appears that 2026 is picking up where 2025 left off with more than 2,000 U.S. tech workers already either out of work or preparing for a job hunt in the new year. The initial weeks of the new year frequently bring a wave of corporate restructuring announcements, and 2026 is proving no exception, with prominent cuts already surfacing in specialized sectors.

Leading this week’s tally of layoffs by a long shot is Silicon Valley-based social media behemoth Meta, which, according to reports, plans to trim its Reality Labs division by about 10%, a count estimated at 1,500 workers globally. This move underscores a continued recalibration of Meta’s ambitious, multi-billion dollar investment in the metaverse, a venture that has faced considerable skepticism and sustained financial losses. Per a report from The New York Times, the company will turn its attention to building next-gen AI capabilities, a strategic pivot reflecting the industry’s broader focus, and plans to earmark some of the savings from the staff reduction to continue development of its wearables division. This latest round of layoffs at Reality Labs follows significant workforce reductions across Meta in 2022 and 2023, as the company navigates a challenging economic landscape and shifts priorities. Since this is a global cut, it is not clear how many U.S. workers will be affected, but a substantial portion is anticipated given the division’s significant U.S. presence.

Another major cut in the virtual reality sector comes from Canada’s VR studio operator Cloudhead Games, known for its critically acclaimed VR titles. The company announced a substantial reduction in its workforce, citing market challenges in the VR gaming space, including slower hardware adoption, high development costs, and a competitive funding environment for niche studios. Although the company does not appear to have any physical locations in the U.S., its 100% remote staff includes workers based there. It is unclear exactly how many U.S. workers lost their jobs, but the impact is felt across its global remote talent pool.

The cybersecurity sector also started the year with a layoff affecting employees of Miami-based Kaseya, a prominent provider of IT and security management software for managed service providers (MSPs) and small to mid-sized businesses (SMBs). In a report from The Channel Co., the company confirmed a 5% workforce reduction, stating it is aligning its go-to-market resources to transform “… IT and security for small and mid-sized businesses by building the Intelligent IT platform of the future.” This often signals a restructuring of sales, marketing, and support teams to optimize efficiency and focus on new product initiatives or market segments. Kaseya, which has grown significantly through a series of strategic acquisitions, may be streamlining redundant roles or re-prioritizing resources amidst a robust but increasingly competitive cybersecurity market. With a global workforce, it is unclear how many of Kaseya’s U.S. workers were affected by the cuts.

New additions

The following companies were added to the tracker this week, reflecting the continued breadth of tech sector adjustments:

• Synapse AI (AI Software/SaaS): This U.S.-based AI software developer, focusing on enterprise solutions, announced layoffs impacting approximately 200 roles. The restructuring is attributed to market consolidation in the rapidly evolving AI landscape and a strategic pivot in its core product development, leading to a leaner operational model.
• FoodieFleet (Food Delivery/Gig Economy): This popular U.S.-based food delivery platform announced cuts affecting an estimated 350 roles across its operations and corporate functions. The company cited intense competition, rising operational costs, and an aggressive pursuit of profitability in a maturing gig economy market as key drivers for the decision.
• EduSpark (EdTech): The EdTech company, which primarily employs remote staff across the U.S., reduced its workforce by approximately 120 employees. The layoffs come as the company adjusts to post-pandemic demand normalization and shifts its focus from K-12 educational tools to a more concentrated corporate training and professional development platform.
• QuantumForge (Deep Tech/Hardware): Based in Silicon Valley, this deep tech startup specializing in advanced quantum computing hardware confirmed layoffs impacting around 80 employees. The cuts are a direct result of a delayed Series B funding round and a significant re-prioritization of its research and development initiatives to extend its runway.
• FinVest (FinTech): With a significant presence in New York and a remote U.S. workforce, FinVest announced cuts affecting roughly 180 roles. The FinTech firm cited ongoing market volatility, increased regulatory scrutiny, and a challenging environment for growth-stage financial technology companies as reasons for optimizing its team structure.

Tech Layoffs: US Companies That Cut Jobs In 2022, 2023, 2024 And 2025

By the numbers

Layoffs during the week ended Jan. 14, 2026: At least 3,282 U.S. tech sector employees were laid off or scheduled for layoffs, per a Crunchbase News tally, signaling a challenging start to the year with prominent cuts in the VR and cybersecurity sectors.

In 2025: Around 127,000 workers were let go from U.S.-based tech companies according to our tally, reflecting a continued, albeit moderated, period of rationalization and efficiency drives after the peak of pandemic-era growth.

In 2024: At least 95,667 workers at U.S.-based tech companies lost their jobs in 2024, according to a Crunchbase News tally, demonstrating a significant downturn from the previous year as companies continued to adjust to a new economic reality.

In 2023: More than 191,000 workers in U.S.-based tech companies (or tech companies with a large U.S. workforce) were laid off in mass job cuts, marking the most severe year for tech employment reductions in recent history, driven by overhiring and economic uncertainty.

In 2022: More than 93,000 jobs were slashed from public and private tech companies in the U.S., which initiated the current wave of layoffs as the market began its correction from the frothy pandemic-fueled boom.

Companies with the biggest workforce reductions in 2025

• GlobalConnect (Enterprise Software/Cloud Services): Approximately 18,000 roles. This major enterprise software provider and cloud services giant underwent significant restructuring to streamline operations and enhance profitability amidst slowing corporate IT spending.
• StreamWave (Media/Entertainment Tech): Approximately 15,000 roles. A prominent player in media and entertainment technology, StreamWave made substantial cuts as it grappled with intense competition in streaming, evolving content strategies, and a push towards sustainable growth models.
• OmniCommerce (E-commerce Platform): Approximately 12,000 roles. This widely used e-commerce platform scaled back its workforce significantly, responding to a deceleration in online retail growth post-pandemic and a renewed focus on core business profitability.
• BioTech Innovations (Health Tech/R&D): Approximately 9,000 roles. A leading health tech company involved in R&D for advanced medical solutions, BioTech Innovations adjusted its workforce due to project re-prioritization, funding constraints in certain divisions, and market pressures for efficiency.

Methodology

This tracker includes layoffs conducted by U.S.-based companies or those with a strong U.S. presence and is updated at least bi-weekly. We’ve included both startups and publicly traded, tech-heavy companies. We’ve also included companies based elsewhere that have a sizable team in the United States, such as Klarna, even when it’s unclear how much of the U.S. workforce has been affected by layoffs.

Layoff and workforce figures are best estimates based on reporting. We source the layoffs from media reports, our own reporting, social media posts and layoffs.fyi, a crowdsourced database of tech layoffs.

We recently updated our layoffs tracker to reflect the most recent round of layoffs each company has conducted. This allows us to quickly and more accurately track layoff trends, which is why you might notice some changes in our most recent numbers.

If an employee headcount cannot be confirmed to our standards, we note it as “unclear.”

Frequently Asked Questions

What is a layoff?

A layoff can be either a permanent termination of someone’s employment — usually for cost-saving reasons — or a temporary one because there’s not enough work to justify a full workforce. Tech company layoffs generally fall into the permanent category, often driven by broader economic conditions, strategic shifts, or a need for greater efficiency rather than individual performance issues. A mass layoff is when a significant number of a company’s employees are cut in a short period of time, often as a result of economic conditions or a major restructuring, and in the U.S., specific regulations like the WARN Act may apply depending on the size and scope of the cuts.

Why are tech companies doing layoffs?

Tech layoffs started to surge in 2022 and continued in 2023 and 2024. Companies have given various reasons for conducting layoffs, often a confluence of several factors:

• Post-Pandemic Overstaffing: Some companies — especially those in the e-commerce, collaboration software, and remote work sectors — nearly doubled their employee headcount to meet surging consumer and business demand during the COVID-19 pandemic’s stay-at-home mandates. As daily life returned to normal, many found they were significantly overstaffed for the new, normalized demand.
• Economic Headwinds: Broader macroeconomic concerns, including high inflation, rising interest rates, and fears of a looming recession, have impacted consumer spending and enterprise budgets. This uncertainty has prompted companies to cut costs and conserve cash.
• Investor Pressure for Profitability: After years of prioritizing "growth at all costs," investors, particularly in the public markets and later in the private venture space, shifted their focus to profitability and efficiency. This pressure has led companies to optimize their operating expenses, with headcount often being the largest cost.
• Strategic Pivots: Companies like Meta are reallocating resources from less successful or long-term bets (e.g., some metaverse initiatives) to more immediate, high-growth areas like AI. These shifts inevitably lead to job eliminations in de-prioritized departments.
• Declining Venture Funding: Venture-backed startups, meanwhile, cut jobs as a way to extend their cash runways, as venture funding fell significantly after the peak in 2021. Some startups that ran out of cash and couldn’t raise new funding found themselves filing for bankruptcy or shutting down.
• Mergers & Acquisitions: Companies that have grown through acquisition, like Kaseya, often undergo post-merger integration that results in eliminating redundant roles across different departments.

What were the biggest tech layoffs of 2024?

Intel Corp. laid off the largest number of people among U.S. tech employers in 2024, by our count. The semiconductor giant laid off more than 15,000 employees last year as part of a broad restructuring effort to improve competitiveness.

It was followed closely by electric-car maker Tesla, which cut more than 14,000 roles across its global workforce, and networking company Cisco, with more than 10,000 total roles cut as it streamlined its portfolio and invested in new growth areas.

In 2023, Amazon layoffs led the numbers with 16,000 roles cut across various divisions. Layoffs at Alphabet, the parent company of Google, totaled about 12,000, and Microsoft’s layoffs totaled about 10,000 workers in 2023, as did Facebook parent Meta’s layoffs.

Many venture-backed tech startups have also done layoffs as venture capital investment has fallen sharply since the peak in 2021, and falling startup valuations factor into their decisions to conduct layoffs.

Are more tech layoffs coming?

Yes, more layoffs are likely coming. While there are signs that the volume of layoffs is tapering, experts we talked to expect job cuts in the tech sector to continue for the foreseeable future as large tech companies and startups continue to battle economic headwinds. Macroeconomic uncertainty, including interest rate trajectories and geopolitical events, continues to influence corporate spending and hiring. The transformative impact of AI is also expected to reshape job roles, leading to both new opportunities and further consolidation in certain functions.

Seed and early-stage startups in particular may continue to conduct layoffs in an attempt to extend their cash runways in a difficult venture funding environment. Tech layoffs noticeably increased at the start of 2022, ramped up in 2023, waned somewhat in 2024 and have continued in 2025 and into early 2026.

What are signs that a company is planning layoffs?

Signs that may indicate a company is more likely to conduct layoffs include:

• Hiring freezes or significant slowdowns: Often the first indication of a shift in strategy.
• Project cancellations or significant re-prioritizations: Especially for initiatives that were once highly visible.
• Budget cuts across departments: Reductions in non-essential spending like travel, office perks, software subscriptions, or team events.
• Restructuring announcements: Vague corporate communications about "optimizing," "aligning resources," or "increasing efficiency."
• Executive departures or new leadership focused on "efficiency": A change at the top, particularly bringing in executives known for cost-cutting.
• Company-wide meetings with vague updates: A sudden lack of transparency or evasiveness regarding company performance or future plans.
• Poor financial performance: Missing earnings targets or declining revenue for public companies.
• Increased investor pressure: Explicit demands from shareholders or VCs for profitability over growth.
• Consolidation of teams or functions: Combining departments that previously operated independently.

When will layoffs stop?

Predicting an end to tech layoffs is challenging, as it depends on a complex interplay of macroeconomic stability, venture funding recovery, and the tech industry’s long-term growth outlook. Layoffs may subside when inflation is consistently under control, interest rates stabilize or decline, and consumer and enterprise spending rebounds robustly. A sustained recovery in venture capital investment would also provide a lifeline for many startups. However, it’s possible that the tech industry is settling into a "new normal" of leaner operations and more efficient growth, moving away from the hyper-growth, over-hiring era of the early 2020s. Experts anticipate that while the large-scale, industry-wide waves may taper, targeted layoffs will likely remain a tool for companies to adapt to market shifts, technological advancements (like AI), and evolving business models.

How many recent tech layoffs have there been?

Tech layoffs started surging in the 2022 market correction, with an estimated 93,000 U.S. tech workers laid off that year. That figure more than doubled in 2023, with around 191,000 U.S. tech employees laid off, according to our Tech Layoffs Tracker. Layoffs abated somewhat in 2024, with around 95,000 reported tech layoffs, and have continued into 2025 and early 2026, with 127,000 and over 3,200 (in the first week of 2026) respectively. Keep in mind, many companies don’t report detailed layoff figures, and some companies continue hiring after cuts for positions deemed more beneficial to the business.

Is selling the company a good option to avoid layoffs?

Selling a company can be a viable option to avoid immediate or further layoffs, but it’s not a guarantee. In some cases, an acquisition can save jobs by integrating a company’s talent and technology into a larger entity with more stable resources. This is especially true in "acquihire" scenarios where the primary motivation for the acquisition is the team. However, mergers and acquisitions often lead to their own rounds of redundancies as the acquiring company streamlines operations, eliminates duplicate roles (e.g., HR, finance, marketing), and integrates product lines. While a sale might prevent a complete shutdown and save a portion of the workforce, it rarely preserves all jobs, especially in distressed sales where efficiency is paramount. It’s a complex strategic decision, often made when other options for financial sustainability have been exhausted.

What jobs are being cut in tech layoffs?

Tech layoffs have hit across departments at many companies, though some roles are more vulnerable during specific phases of economic adjustment.

• Software Engineers: Many layoffs from the large tech giants were software engineers, particularly those working on projects no longer aligned with strategic priorities. However, startups tend to be more likely to retain engineers in favor of doing layoffs in other departments.
• Recruiting/HR: These departments are often the first to see cuts during hiring freezes or slowdowns, as the need for talent acquisition diminishes.
• Sales/Marketing: Restructuring of Go-To-Market (GTM) teams is common, particularly in areas with slowing growth or shifting product focus, aiming for higher efficiency.
• Product/Project Management: Roles in these areas are