Why the tech sector is shedding jobs like never before
So, the tech world has been on a roller‑coaster ride for a while now. If you ask any friend who works in a start‑up in Bengaluru, they’ll tell you that the atmosphere has gone from "buzzing" to "cautiously quiet" within a few months. The data we have, taken from layoffs.fyi, shows that more than 70,000 people have been let go from 80 different companies in just the first three months of this year. That’s a massive number – think about a whole football stadium full of people, except they are all engineers, designers, marketers, and support staff who suddenly find themselves on the job‑hunt again.
What’s happening behind the scenes? A mix of cost‑cutting, restructuring and a shift in business priorities. Companies are trying to trim the fat and focus on the parts of the business that promise real growth – mainly cloud infrastructure, AI, and services that can survive a slowdown. It isn’t just the US; the cuts are happening in Indian hubs too, especially Bengaluru, which is often called the "Silicon Valley of India".
Oracle’s massive 30,000‑job reduction – the biggest hit yet
When I first read that Oracle had cut around 30,000 jobs in March, I was stunned. That’s almost as many people as the entire staff of a mid‑sized Indian IT services firm. The announcement came as part of a larger restructuring plan aimed at sharpening Oracle’s focus on its cloud infrastructure and enterprise services. In other words, they are pulling away from legacy software that no longer sells like hotcakes and doubling down on the cloud. It's a classic case of "sell the old, buy the new" – but the emotional cost for those losing their jobs is huge.
Imagine a typical Oracle office in Mumbai or Hyderabad where you see cubicles filled with people working on database solutions. Suddenly, the lights go dim, desks are cleared, and the hum of activity drops. A colleague of mine who used to work with Oracle’s finance software told me that the layoff notice felt like a slap because the company had been a stable employer for years. Even though the move is being called one of the biggest single‑company layoffs in recent years, the management argues it’s necessary to stay competitive.
From an Indian perspective, many of the laid‑off employees are likely to move to other tech firms or start their own ventures. The local start‑up ecosystem is pretty resilient, and we have seen a wave of former corporate engineers setting up niche service companies, especially in AI and data analytics.
Meta trims 200 roles – a smaller but still significant cut
Meta’s news was a little less dramatic – just 200 employees let go in April. Compared to the massive round of cuts it did in 2023‑24, this looks almost like a routine trimming. Yet, it’s still a signal that the company is continuously fine‑tuning its workforce. Meta says the cuts are part of realigning resources towards artificial intelligence and its long‑term vision of the metaverse.
In Indian cities like Gurgaon and Bengaluru, Meta has a strong presence with R&D teams working on everything from VR headsets to AI‑driven content moderation. The people who left were likely part of projects that are either being shelved or merged with other teams. A friend of mine who works in Meta’s AI research lab told me that the company is focusing more on “deep‑tech” roles and cutting some of the peripheral positions that don’t directly feed the core AI pipeline.
Even though 200 may sound like a drop in the ocean, for each of those individuals it’s a life‑changing event – they have to update their LinkedIn, start looking for new opportunities, and possibly relocate if the next role isn’t in the same city.
GoPro’s 145‑person exit – hardware makers feel the heat
GoPro, the company famous for its action cameras, announced that it laid off about 145 employees – roughly 23% of its workforce. That’s a huge proportion for a company that isn’t that big to begin with. The hardware market has been under pressure: demand is weaker, competition from smartphones is fierce, and profit margins are getting squeezed.
What struck me was the way the news was delivered – a short statement saying the company is focusing on “core product lines”. For a hardware firm, that can mean cutting down on peripheral accessories, marketing teams, or even research on new camera forms that didn’t gain traction. In India, GoPro’s presence is mostly through online sales and a few partner stores; the layoffs might affect the regional sales and support staff the most.
Again, the ripple effect will be seen as those workers move to other consumer‑tech firms, perhaps brands like Samsung or Xiaomi that still have footholds in the Indian market.
Other tech firms also joining the downsizing trend
It isn’t just the big names. The data from layoffs.fyi shows that companies like Pendo, Bolt, Epic Games and Zendesk have all announced job cuts. This tells us that the layoffs are not confined to a single niche – they span consumer tech, finance, AI, enterprise software and media.
Take Pendo, for example. They provide product‑analytics tools used by many SaaS companies. In a market where spending on tools is being re‑evaluated, they decided to reduce headcount to stay lean. Bolt, the checkout‑experience startup, is probably feeling the pinch from larger e‑commerce players who are tightening budgets. Epic Games, famous for Fortnite, is still wrestling with the cost of maintaining massive online worlds and developing new games.
Zendesk, a customer‑service platform, announced cuts as part of a broader effort to integrate more AI‑driven support features, which often means fewer human agents are needed. The pattern is clear: wherever a company can automate or refocus, they are doing it, and people get caught in the cross‑fire.
Geographical hotspots – where the cuts are most felt
Geographically, the layoffs remain concentrated in traditional tech hubs. The San Francisco Bay Area, New York, Seattle and Bengaluru are repeatedly mentioned. In Bengaluru, also known as the "Silicon Valley of India", many of the same multinational firms have sizable development centres. When a global firm announces cuts, the regional office often mirrors the move.
I know a few developers in Bengaluru who lost their jobs at a US‑based SaaS company – they were told the role would be eliminated as part of a global headcount reduction. It’s not just the loss of income; it’s the loss of community, of daily chai with teammates, the occasional office cricket match. The emotional aspect is sometimes overlooked in the numbers.
Looking back – 2025 was a rough year, but 2026 shows a slight moderation
If we compare this year to 2025, we see a slight easing. In 2025, 271 tech companies let go of 124,201 employees – a staggering figure that made headlines worldwide. This year, the pace seems a tad slower – 70,000 jobs across 80 firms in three months. Still, the sector hasn’t fully recovered. The reason for the moderation may be that companies have already trimmed the most obvious excesses, and now they are making more targeted cuts.
From an Indian viewpoint, the tech talent pool is still massive, and many of those who were laid off are likely to find new roles in the burgeoning start‑up scene, especially in areas like fintech, health‑tech and AI. The government’s push for a "Digital India" agenda also means there will be new opportunities, even if the big multinationals are pulling back.
Amazon rumor debunked – no fresh layoffs announced
There was a swirl of speculation that Amazon would cut around 14,000 jobs in May. The story started on an anonymous job‑platform called Blind and later got picked up by a Chinese tech portal. According to those rumours, the cuts would target white‑collar roles – levels L5 to L7 – across AWS, retail and HR, while warehouse staff would stay safe.
However, Amazon quickly put the rumours to rest, calling the claims “false and not based in fact”. A spokesperson said there is no basis for any large‑scale workforce reduction at this time. It’s a relief for many who were anxious after hearing the numbers, especially those of us who have friends working in Amazon’s Indian offices.
In India, Amazon has a huge presence – from cloud services in Hyderabad to retail operations in Mumbai. If a massive layoff were to happen, it would affect a large number of engineers, managers and support staff. So far, the company’s denial holds, which means the focus stays on the real layoffs we discussed earlier.
What does all this mean for Indian tech professionals?
For anyone working in tech in India, the current climate is a mixed bag. On one hand, the big multinational names are clearly re‑structuring – that can feel unsettling. On the other hand, the Indian start‑up ecosystem is vibrant, and many of the displaced talent are becoming entrepreneurs or joining smaller, faster‑growing firms. The government is also rolling out incentives for companies that invest in skilling and R&D, which may create fresh positions.
My own experience has been watching friends move from a corporate role at Oracle to a budding AI start‑up in Bengaluru. The transition wasn’t smooth – they had to brush up on new tools, learn about fundraising, and adapt to a different culture. But they also reported feeling more empowered and seeing a clearer impact of their work.
In most cases, it’s wise to keep your LinkedIn profile updated, expand your network, and maybe pick up a new skill – say, a cloud certification or a data‑science course. The more flexible you are, the easier it will be to navigate these waves.
