Major Companies Announce Layoffs in Early 2026 Amid AI Shift

Companies like Amazon, Citi, and Pinterest have said they will lay off workers in early 2026.

It's only the start of 2026, but layoffs are already happening in many industries as big companies try to cut costs, reorganize their operations, and deal with the growing effects of AI.

From Amazon to Citi, Pinterest to Nike, many companies have said they are laying off workers. More than 100 companies have filed legal WARN notices in the last few months, which means more layoffs are likely to come.

AI and Economic Changes Drive Job Cuts

Many of the cuts are being blamed on AI making things more efficient, the economy getting worse, and companies changing their priorities.

A survey by the World Economic Forum last year found that 41% of companies around the world expect to cut jobs in the next five years because of AI. At the same time, the number of jobs in big data, fintech, and AI-related fields is expected to double by 2030.

The current wave of layoffs comes after several years of downsizing in the tech, media, finance, and retail sectors as companies adapt to life after the pandemic.

Big Companies Announcing Layoffs

Here are some of the biggest job cuts that have been announced so far this year:

Amazon

Amazon said in January that it would cut about 16,000 corporate jobs around the world. This comes after 14,000 people were let go in late 2025. Company leaders said that the decision was part of an effort to cut down on red tape and make things run more smoothly.

Angi

Angi, which used to be called Angie's List, said it would lay off about 350 people to save money and work more efficiently. The company said that “AI-driven efficiency improvements” were a big reason for the cuts, which will save the company up to $80 million a year.

Citi

Citigroup said that it will keep cutting jobs in 2026 as part of a plan to get rid of about 20,000 jobs, which is about 10% of its global staff. The big bank says the changes are meant to make sure that the number of employees matches the needs of the business.

Expedia

The online travel company said in late January that it would be laying off workers, but it didn't say how many people would be affected. Expedia said it is getting rid of some jobs and making new ones as it reorganizes to grow in the future.

Lululemon

The athletic clothing store let go of about 100 part-time workers as part of its move to a fully full-time staffing model in its North American contact centers.

Nike

Nike said it would lay off 775 workers in Tennessee and Mississippi as part of its efforts to modernize and automate its supply chain operations.

The social media company said it would restructure, but only 15% of its workers would be affected. Pinterest said that these changes are part of a bigger push toward a “AI-forward strategy.”

Saks

Saks, a high-end retailer, will close a store in Florida as part of a Chapter 11 bankruptcy restructuring. This will put at least 74 people out of work.

T-Mobile

The wireless company confirmed that it will cut jobs in early 2026, but it hasn't said how many jobs will be lost.

Tailwind

In January, the software company Tailwind laid off three-quarters of its engineers. The CEO said this was because of falling sales due to competition from AI.

UPS

This year, United Parcel Service plans to cut its workforce by 30,000 jobs, mostly through attrition and voluntary separation programs.

A Continuing Trend

Early reports suggest that 2026 could see another year of widespread corporate downsizing as companies adapt to new technologies and ways of doing business.

Some industries are losing jobs, but others, especially those that work on AI development and data analytics, are likely to see significant growth. Many workers remain uncertain about their long-term job security as companies continue to focus on innovation and efficiency.