Tech giants like Microsoft and Qualcomm are cutting thousands of jobs as automation reshapes the industry, with layoffs spreading across finance and tech globally.
Tech sector reduces workforce
After years of rapid hiring, the technology sector is now cutting jobs to reduce costs, as automation takes over some tasks. Companies are streamlining operations and reducing staff in response to changing market conditions.Microsoft cuts 4,800 jobs
Microsoft announced the elimination of 4,800 positions in July 2026, affecting its sales team and the Xbox division. The move represents 2.1% of its global workforce, though the company clarified that artificial intelligence does not directly replace these roles.Qualcomm warns of more layoffs
Qualcomm CEO Cristiano Amon informed employees in an internal memo that performance-based layoffs would occur in November 2026, as smartphone chip sales decline. The company is shifting its focus to data centers to offset the drop in demand for mobile chips.Other companies follow suit
eBay is cutting 9% of its workforce for the second time this year, aiming to simplify its operations. Barclays is also reducing several hundred positions in its investment banking division, joining the trend of downsizing in the financial sector.TechCrunch reports job losses
According to TechCrunch, the tech sector saw around 120,000 job eliminations throughout 2026. Qualcomm, with about 52,000 employees, is among the companies adapting to the shift in demand by focusing on new areas like data centers.
