Technology Sector Layoff Wave Intensifies, 52,000 Workers Displaced Due to AI

Jakarta, VIVA – The wave of redundancies in the technology sector has intensified sharply in the first quarter of 2026. This surge occurs amid companies’ increasingly aggressive strategies to invest in artificial intelligence (AI) technology.

Data from Challenger, Gray & Christmas indicates that tech sector redundancies rose 40% year-on-year. Throughout March 2026, US-based technology companies announced 18,720 redundancies, bringing the total since the start of the year to 52,050 cases.

This figure exceeds the 37,097 cases from the same period the previous year. Several major technology companies have also implemented workforce reductions. Dell recorded cuts of around 11,000 employees throughout the year so far.

Meta also laid off 700 workers in its Reality Labs division in March. Meanwhile, Oracle dismissed thousands of employees as part of efforts to bolster AI investments. Epic Games also cut approximately 1,000 positions due to financial pressures.

The report notes that the technology sector recorded the highest number of redundancies compared to other sectors last month, surpassing transportation (32,241), healthcare (23,520), and finance (9,397). In the analysis, AI is cited as the primary cause of job losses across various industries.

As many as 25% of total redundancies in March, or around 15,341 jobs, were directly linked to AI. This is higher than other factors such as company or workplace closures at 13,931 cases, restructuring at 8,726 cases, and unfavourable economic and market conditions at 6,597 cases.

Throughout 2025, companies cited AI as the reason for 54,836 redundancies, or about 5% of total job cuts. In 2026, that number is projected to rise, with AI already associated with 12,304 redundancies or around 8% of total cases to date.

Since tracking began in 2023, AI has been mentioned in 99,470 redundancy announcements, or about 3.5% of all planned job cuts during that period.

The report also forecasts that the wave of redundancies in the technology sector will continue throughout the year. This is in line with the substantial investments companies are making in AI development to sustain competitiveness.

“Companies are redirecting budgets to AI investments at the expense of jobs,” said Andy Challenger from Challenger, Gray & Christmas, as quoted from Digit News on Friday, 3 April 2026.