New Delhi: More than 175,000 technology workers have lost their jobs globally in 2026 so far, putting the industry on course for another year of large-scale workforce reductions as companies restructure operations, cut costs and shift spending towards artificial intelligence and other newer technologies. The pace is already faster than in 2025, when more than 245,000 tech workers were laid off during the full year. In India, the changing approach is visible through Microsoft placing hundreds of employees on performance improvement plans, Oracle preparing another round of job cuts, and technology companies becoming more selective about freshers and campus hiring.
Microsoft has put around 500 employees in India on performance improvement plans, according to estimates from Pareekh Jain, chief executive of market research firm EIIRTrend. Jain said about 2 per cent of Microsoft India’s workforce, or roughly 400 to 500 employees, could be covered by the company’s global PIP exercise.
The move does not necessarily mean those employees will be dismissed. Microsoft said it uses formal performance improvement plans and global voluntary separation processes as part of its workforce management. Employees who do not meet the expectations of their roles may receive coaching, be placed on a PIP, offered voluntary separation or be terminated.
“The share of employees globally on PIPs is a very small percentage,” a Microsoft spokesperson said, while declining to provide regional details or comment on individual personnel matters.
Gaurav Vasu, chief executive of market research firm UnearthInsight, said PIP-related exits generally account for around 1 per cent to 2 per cent of a company’s workforce and can result from either performance issues or a mismatch between employee skills and changing requirements.
Oracle is facing a larger workforce restructuring in India. Jain estimated that between 2,000 and 3,000 employees could be affected, with the cuts expected to take effect from September 1. Oracle employs about 30,000 people in India and had already eliminated around 12,000 jobs in an earlier round.
The latest restructuring reflects a wider shift in the skills technology companies are seeking. Vasu said Oracle is moving budgets away from legacy sales capabilities towards newer areas, describing the changes as an AI-led restructuring involving a combination of PIPs and workforce reallocation.
Kamal Karanth, co-founder of staffing firm Xpheno, said PIPs should not be viewed simply as an alternative to layoffs because their purpose is to give employees an opportunity to improve. He also said AI’s impact on engineering jobs is likely to become clearer over the next two to three years, particularly for junior and mid-level engineers working on lower-complexity tasks.
The pressure is also reaching India’s entry-level technology market. Large companies have become more cautious about campus recruitment, while some fresh graduates have faced long delays before joining jobs they have already been offered. IBM, Accenture, Oracle Financial Services Software and Cognizant have previously told candidates that joining dates could depend on project availability, business requirements and administrative processes. Some graduates have consequently waited months, and in some cases more than a year, to begin employment.
Recruitment is increasingly being tied to actual project demand instead of large-scale hiring to maintain bench strength. This shift is reflected in the broader employment numbers. India’s five largest IT companies recorded a combined net workforce reduction of 6,981 employees in FY26, compared with a net addition of 12,718 employees in FY25. Nasscom estimates that the industry’s total workforce grew by only 1.35 lakh to 5.9 million in 2026.
There are signs that hiring may be stabilising in parts of the sector. India’s six largest IT companies added a combined 5,400 employees in the first quarter of FY27, reversing a net reduction of 7,100 jobs in the previous quarter. Tata Consultancy Services accounted for much of that increase, adding 9,000 employees during the quarter, its largest quarterly workforce addition in three years.
Global Capability Centres are also becoming important sources of technology employment in India. However, HR professionals say GCC recruitment is not a direct replacement for traditional campus hiring. These centres increasingly seek specialised talent in areas such as AI, data analytics, product development, cybersecurity and digital engineering.
The global figures show that workforce restructuring extends well beyond India. Oracle said in a June 23 financial filing that it had cut about 21,000 jobs over the previous year, equivalent to roughly 13 per cent of its workforce.
In July, Microsoft announced another 4,800 job cuts, around 2.1 per cent of its workforce, with its Xbox gaming operations among the areas most affected. Xbox chief Asha Sharma said about 3,200 Xbox roles would be eliminated through fiscal 2027, including 1,600 cuts announced on July 6. Visa is cutting around 2,600 positions, or 7 per cent of its workforce, mainly in technology and product teams. Monday.com is eliminating about 630 jobs, or 20 per cent of its workforce, as it makes AI a larger part of its operations. Uber has reportedly reduced its customer service workforce by 10 per cent, while Amazon is cutting jobs in its artificial general intelligence group and narrowing its focus to AI projects it considers most important to customers.
The cuts continued through May and June. Intuit announced plans to eliminate about 3,000 jobs, or 17 per cent of its workforce, while Meta began cutting around 8,000 jobs, or 10 per cent of its workforce, and planned to eliminate another 6,000 open positions. Cisco plans to cut just under 4,000 jobs in the fourth quarter while increasing investment in areas including silicon, optics, security and AI. Cloudflare is cutting more than 1,100 employees, PayPal plans to eliminate nearly 4,800 jobs, or about 20 per cent of its workforce, and Coinbase is cutting 700 positions, or about 14 per cent.
Other companies have also reduced headcount. Snap announced 1,000 layoffs, equal to 16 per cent of its workforce, while Disney announced 1,000 cuts and Marvel reduced its workforce by 8 per cent. Meta cut another 200 workers in the Bay Area in April and around 700 employees in March. Epic Games laid off more than 1,000 workers after weaker engagement with Fortnite reduced revenue. Chief executive Tim Sweeney said those cuts were not caused by AI.
Apple has joined the latest wave, cutting at least 60 employees from its Vision Group, which works on the Vision Pro headset. The company is also reducing jobs in its Intelligent Systems Experience group, which is involved in AI systems used across Apple devices.
The layoffs show that AI is a significant factor behind workforce changes, but it is not the sole cause. Companies have also cited weaker demand, restructuring, changing business plans, cost reduction and poor performance in particular areas. Etsy has said its layoffs were not driven by AI, while Disney and General Motors have pointed to restructuring and changing business requirements. The 2026 employment picture therefore reflects both the rapid adoption of AI and a broader reassessment by technology companies of which skills, teams and businesses they need for their next phase of growth.
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