Microsoft announced it has eliminated about 4,800 roles, or 2.1% of its global workforce, adding to a string of AI-related layoffs in the tech industry. The company stated the roles being cut are "not being replaced by AI," but acknowledged that "AI is changing how work gets done" and automating many everyday tasks. These cuts continue a trend where companies report record revenues while simultaneously culling their workforces, pointing to AI as both the engine of growth and the reason for the cuts. Tech layoffs hit their highest single month in years in May, with AI being the most-cited reason, and roughly 120,000 tech roles have been cut in 2026 according to Layoffs.fyi. The article provides a running list of major tech companies that have announced significant layoffs this year with AI as a stated factor. Oracle disclosed in late June that it had reduced its workforce by 21,000 employees over the past 12 months, a decline of 13%, citing that "the adoption and deployment of AI technologies across our operations have resulted, and may continue to result, in reductions to our workforce." GitLab laid off roughly 350 workers, about 14% of its staff, to fund AI infrastructure investment and handle surging traffic from AI workflows, with CEO Bill Staples stating agentic workloads are "pushing competitors to the brink." Alphabet's Google has quietly cut employees across its Cloud division, including its Threat Intelligence Group and Mandiant-linked cybersecurity staff, even as Cloud revenue grew 63% to exceed $20 billion for the first time.
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