Mass layoffs are hitting nearly every corner of the American economy in 2026, and one key factor keeps coming up: artificial intelligence.
From tech giants to government agencies, employers are slashing tens of thousands of jobs, citing automation, cost-cutting, and efficiency.
A post on X by The Kobeissi Letter stated: “AI is officially replacing jobs at a mass scale in the US. Where will all of these people go?”
The post also included a list of major layoffs from a range of companies, illustrating the broad scope of cuts across sectors.
That question now looms over more than 600,000 workers impacted by job cuts across major sectors.
In 2025 alone, layoffs in the U.S. topped 1.1 million. According to WARN Tracker, over 100 companies have already filed notices about staff reductions in 2026, with many of them referencing automation and AI.
Pinterest is cutting around 780 workers as it shifts resources toward roles focused on artificial intelligence.
Dow is laying off 4,500 employees while increasing its focus on automation and efficiency.”
Even small tech companies are feeling the sting. Tailwind CEO Adam Wathan wrote, “75% of the people on our engineering team lost their jobs here yesterday because of the brutal impact AI has had on our business.”
Angi, the contractor listing site formerly known as Angie’s List, is laying off 350 workers.
According to a Jan. 7 SEC filing, the decision was made to streamline operations and reduce costs, citing efficiency gains tied to AI adoption.
The cuts are expected to save $70 million to $80 million annually, though the layoffs themselves will cost the company between $22 million and $30 million.
The Cuts Span Sectors
According to The Kobeissi Letter, recent layoffs span far beyond Silicon Valley. The post compiled a list of companies across sectors that have announced major job cuts so far:
- U.S. Government: 307,000 roles
- UPS: Up to 30,000
- Amazon: 30,000 (including 16,000 in January alone)
- Intel: 25,000
- Nissan: 20,000
- Nestle: 16,000
- Microsoft: 15,000 + 7,000 more in a separate round
- Bosch: 13,000
- Verizon: 13,000
- Dell: 12,000
- Accenture: 11,000
- Ford: 11,000
- Novo Nordisk: 9,000
- PwC: 5,600
- Salesforce: 4,000
- IBM: 2,700
- American Airlines: 2,700
- Paramount: 2,000
- Target: 1,800
- General Motors: 1,500
- Applied Materials: 1,444
- Kroger: 1,000
- Meta: 1,000+ from its Reality Labs division
- Angi: 350 (according to Business Insider)
Additional workforce reductions reported in early 2026 include Autodesk, Home Depot, Tronox, Mastercard, and Citigroup, according to Reuters.
Most cite the same factors: AI strategy, automation, and profitability.
AI Is the Common Thread
Whether the layoffs are due to direct automation, strategic realignment, or declining revenue blamed on AI disruption, it’s clear that artificial intelligence is accelerating workplace change.
Meta is reportedly cutting over 1,000 jobs from its Reality Labs division as it shifts away from metaverse investments and toward wearables.
Amazon, meanwhile, is now in its second major round of cuts in three months.
Even traditional manufacturers are jumping in. Dow aims to save $2 billion with its AI-enabled restructuring.
Tronox is closing a Chinese plant due to weak demand and rising costs. Citigroup continues a long-term plan to eliminate 20,000 jobs, starting with 1,000 roles in January.
A Growing Divide
As reported by Business Insider, the World Economic Forum found in 2023 that 41% of global companies expected to reduce headcount in the next five years due to AI.
At the same time, demand for roles in AI, fintech, and big data is expected to double by 2030.
That means the job market may not be shrinking overall, but it is being reshaped in ways that could leave millions behind.
Some economists remain hopeful, pointing to the U.S. economy’s strong 4.3% growth in Q3 2025 and projections of 2.7% for Q4.
But for people losing their jobs to software, the bigger question isn’t about GDP. It’s personal.
So, Where Will All of These People Go?
That question still has no clear answer. Upskilling, retraining, and policy shifts will likely play a role.
But for now, tens of thousands of Americans are facing an uncertain future as machines and algorithms take over the roles they once filled.
And this may only be the beginning.