• Oracle laid off staff in March. A new filing shows its global head count fell by 21,000 over the last year.
• Costs associated with restructuring increased by $1.5 billion over the past year, up 391%.
• Oracle has been ramping up data spending during the AI boom.

Oracle's head count has been shrinking as it made layoffs to cut costs — and now there's a number behind its reduction.

A filing published Monday showed that its global workforce declined by 21,000 between May 2025 and May 2026. The number includes both attrition and layoffs.

Oracle employed around 141,000 employees worldwide as of May 31, 2026, the filing said.

Compared with the numbers reported in its 2025 filing, the company shed 9,000 jobs in the US and 12,000 jobs internationally.

Restructuring and other expenses — which consist of costs for employee severance, contract termination, and other exit activity — increased by 391% from $374 million to about $1.8 billion over the last year, Oracle said in the filing.

Oracle did not respond to a request for comment.

In March, the company began laying off staff but did not confirm the scale of the cuts.

The notification email sent to the laid-off employees, which Business Insider exclusively obtained, said the decision to eliminate roles was made "after careful consideration of Oracle's current business needs" and was part of "broader organizational change."

According to LinkedIn posts from laid-off employees, the cuts affected staff across Oracle Health, Sales, Cloud, Customer Success, and NetSuite.

The reduction in head count comes as Oracle invests heavily in data center infrastructure while looking for ways to rein in costs. Oracle's stock is down about 15% over the last year.

In March, Oracle executives told investors not to worry about its significant data center spending because the company is "very, very good" at cost-cutting.

In January, Business Insider reported that the company was struggling to find financing for Stargate, its $500 billion data center initiative with OpenAI. In February, Oracle announced a $50 billion debt raise to help fund its infrastructure buildout.

Across the tech industry, major companies have been reducing their workforces. Many bosses have cited AI in their layoff notifications.

In January, Amazon said it would slash about 16,000 corporate roles, months after cutting 14,000 employees. Meta axed around 8,000 staffers in May, and Dell's recent 10-K filing showed that employee numbers have fallen by 36,000 over the last three years, a 27% decline in head count.

• After months of uncertainty, a Meta data scientist said she felt a sense of relief upon getting laid off.
• Moyan Chen said the loss of her job made her question what she wanted to do next.
• She's considering AI startups, seeing more risk in traditional data roles at big companies.

Moyan Chen was laid off from her role as a data scientist at Meta in May after just under a year on the job. The 24-year-old, who lives in New York City, isn't sure what she wants to do next. Business Insider has verified her identity and former employment. The following has been edited for brevity and clarity.

When the rumor of layoffs at Meta leaked in March, there was no timeline. Some of my colleagues and I were fearing Wednesdays because Meta has sometimes laid off people on those days. So, every Tuesday night, when I left work, I wondered if I would be coming back.

On Wednesday mornings, I would wake up early to check my email. That lasted for a month, until April, when there was a date for the layoffs: May 20. When the day finally came, and I got laid off, I was like, "This is it." It was more like relief than pain.

I feel like, ultimately, I lost my job to AI.

A lot of my coworkers were also impacted, and they're trying to find jobs. They are making posts on LinkedIn and asking for new opportunities. It feels like we are all sailing on the sea, and Meta is a huge ship that's moving very fast. When the AI storm comes, is your next move to jump to a smaller, slower ship?

Some people I worked with were saying it's better to find a job in finance because it takes longer for them to adopt AI. But ultimately, is the same thing going to happen to you?

A switch in my career path

After I got laid off, I wasn't that nervous, because I'm single and have no family in the US. My parents have been wanting me to go back to China anyway. That's the worst-case scenario because I love the US and the energy of New York City.

I don't know if I plan to find another job at a big company. I have interned at three of them, and now I don't want to climb the corporate ladder. I used to wonder, "How am I going to feed myself if I don't work for a big company?" That's why I didn't resign from Meta. I kept working, and I worked hard.

Now I feel like it's not safe anymore, like I can get laid off at any time. Meta has been very generous with severance, so I have a couple of months to figure out what I'll do next.

I don't think this layoff is a bad thing for me. It's more like a switch in my career path. It's making me see that I could live a different life, and it's probably better than the corporate life.

I'm still in a transition period and don't have all the answers. Seeing how AI is changing things, it makes me rethink the type of job I might want. I've started creating content online to document my career journey and what I'm learning about AI. I'm also interested in exploring career coaching to help people who are experiencing this transition brought about by this new technology.

The longer-term risk

Whatever I end up doing, I expect AI will have an impact. At Meta, I was a data scientist working on Instagram. For that kind of job, the more repetitive tasks are definitely going away. So, writing queries and spending time creating visualizations — these things have already been replaced by AI in Big Tech.

If you only know how to code, that's not enough. If you're just writing SQL queries, using Python, or tracking and analyzing metrics, it's not a very promising career anymore. There will still be a role called "data scientist," but they will need to know more about other functions. There is this emerging trend that requires us to have broader skills and knowledge because of AI.

It got to the point where I wouldn't check AI-generated queries because they have gotten so accurate. I thought that if AI made a mistake on a specific task, I would make 10. For big, ambiguous projects, AI would still make a lot of mistakes, but for specific tasks, it was super accurate. It's very much like a talented individual contributor.

I'm less interested in AI as a stand-alone technology and more interested in how it changes the way people work and build products. If I come across a team that aligns with my interests and values, I would seriously consider joining an AI startup.

Those companies can be risky, but staying at a big company doing traditional data analytics and reporting jobs just feels like I will be left behind. That's riskier in the long term.

Do you have a story to share about your career? Contact this reporter at tparadis@businessinsider.com.

• The job market is showing revived strength, despite big-name companies announcing layoffs.
• The economy had its best three-month average job growth since early 2024.
• But it's still hard for some to find a job, and inflation outpacing wage growth is a new issue.

From about 8,000 layoffs at Meta to thousands of cuts at Amazon, media outlets have been following high-profile employment changes.

However, cuts at major tech companies this year represent only a sliver of what's happening in the massive job market, filled with millions of workers and unemployed Americans across different industries and business sizes.

That larger job market is showing renewed strength, although there are still some bumps in the road. Overall job growth is more robust, layoffs remain pretty low, and it's not just the healthcare sector keeping it alive. On the downside, wage growth isn't keeping up with inflation anymore, while rising long-term unemployment and low hiring rates suggest it's still hard to find a new job if you're out of work.

The monthly jobs report out on June 5 showed the economy had three straight months of robust gains through May, well above what's needed to keep unemployment steady and the highest three-month average since early 2024.

"This spring really is solidifying that the labor market is returning to a growth pattern," said ZipRecruiter economist Nicole Bachaud. "Businesses are reaccelerating hiring, jobs are growing across different industries, and there's just a general sense of renewed energy in the market that was largely stagnant for most of the last year."

With now five months of data in 2026 from the Bureau of Labor Statistics, we break down how the job market is looking.

Overall job growth is at its strongest level in over two years

Let's first look at the good news.

The US added 172,000 jobs in May, about double the expected gain. The same jobs report showed upward revisions to the previous two months: from a job gain of 185,000 to 214,000 in March and from a gain of 115,000 to 179,000 in April. Together, that makes the highest three-month average since March 2024.

Healthcare, which has been an engine of growth for the past couple of years, isn't the only field propping up the job market. Leisure and hospitality had the highest net gain last month, likely partly driven by World Cup demand, followed by government and healthcare.

While many sectors are adding jobs, Kory Kantenga, LinkedIn's head of economics for the Americas, said there's still a lack of hiring momentum across the board. He said healthcare is the only sector that's largely been consistent over the past few years.

"The success or not for job seekers depends upon what sectors they are searching in and their location," said Mark Hamrick, senior economic analyst at Bankrate.

Meanwhile, the April JOLTS report from the Bureau of Labor Statistics showed job openings surged to the highest rate since 2024, driven by professional and business services. Hamrick said the increase in job openings, muted layoffs and discharges, and low separations, "could set the stage for further acceleration in hiring."

Outside the gold-standard jobs reports from the BLS, private data releases showed the job market's strength. HR services platform Gusto highlighted in its monthly report that small businesses across most sectors added jobs last month, with gains across all US regions. ADP similarly reported that private job gains were strong across firm sizes and in most sectors, with its chief economist, Nela Richardson, saying there's sustained momentum heading into the summer.

The healthy job growth in the job market doesn't mean people should dismiss high-profile layoff news at large companies.

"A thousand people losing their jobs, that's a thousand people," Bachaud said. "That's a very real, tangible number; for those thousand people, it's a very terrible experience." She added that 1,000 job cuts at one company don't move the overall US employment needle.

But wages aren't keeping up with inflation, and white-collar work is stagnating

The economy does have some pain points: ongoing uncertainty from the Iran war, inflation outpacing wage growth, and increased long-term unemployment.

The robust job gains don't mean we are out of the woods from the low-hire job market. "Tech is low-hire, some fire, while other sectors are low-hire, low-fire," Laura Ullrich, the director of economic research in North America at the Indeed Hiring Lab, said.

Finding work is persistently hard in some white-collar fields. The financial activities sector, where employment has generally been falling for about a year, lost 22,000 jobs in May. The information sector, which includes media and tech, has mainly experienced monthly job loss over the past few years.

Data from the Bureau of Labor Statistics showed the hiring rate dipped in April to 3.2%, which Glassdoor's chief economist Daniel Zhao wrote is comparable to the 2010s, when the job market was still recovering from the Great Recession. Amid low hiring, people aren't feeling too confident about finding a job, as seen in the low 1.9% quits rate, compared to a high of 3% during the Great Resignation period of 2021 and 2022.

It's also still hard to get out of long-term unemployment, or being unemployed for at least 27 weeks. Monthslong employment can have financial consequences, especially since many states offer just 26 weeks of unemployment benefits. Of the 7 million unemployed people in the US, 27.5% had been unemployed for at least 27 weeks in May, which Ullrich said is fairly high in an economy with healthy job creation.

"People who have been unemployed are having a really hard time transitioning out of that unemployment, and employers don't really seem to be motivated to pull from that pool," Bachaud said.

Wage growth has recently crossed an unwelcome threshold: it isn't keeping up with inflation. Bachaud said this is especially creating financial strain for middle-income households. Inflation exceeded 4% for the first time since 2023 in May.

"More people are feeling worse off about their financial situation now than a year ago, and affordability is no doubt playing a role," Elizabeth Renter, senior economist at NerdWallet, said in written commentary. "Higher and higher gas and food prices impact households in a dramatic way — these are things we can't easily cut out of our budgets, or even reduce."

How are you doing in today's job market? Did you make a career trade-off, such as taking a lower-paying job because of better work-life balance? Reach out to this reporter to share at mhoff@businessinsider.com or fill out this form about career trade-offs.

• Apollo's chief economist said there's "zero evidence of AI-related job losses."
• A parade of tech leaders celebrated that take over the weekend.
• At least a dozen major companies, meanwhile, have cited AI in their decision to lay off workers this year.

Anyone worried that AI will replace them should take a deep breath, at least according to Apollo Global Management's chief economist.

In a blog post on Friday, Torsten Sløk said there is "zero evidence of job losses because of AI," citing the ADP National Employment Report. Instead, he said, companies are hiring candidates who have AI skills.

"Many firms are hiring AI implementation experts, and the data center buildout is putting upward pressure on salaries for AI experts and on prices of semiconductors, equipment, and energy," Sløk said. "The bottom line is that the AI spending boom is stoking both employment and inflation."

Sløk echoed that sentiment in an April blog post, writing that "cheaper inputs don't shrink industries. Instead, AI is going to increase both productivity and employment."

The latest ADP report found that private companies added almost 110,000 more people to their payrolls in April.

Anxiety that AI will eradicate the average job is everywhere, stoked in part by those behind the technology. While Anthropic CEO Dario Amodei and OpenAI CEO Sam Altman have recently changed their tune as they gear up for their respective IPOs, they have both warned for years that AI could upend entire job categories. Amodei famously said last year that AI could wipe out half of all entry-level white-collar jobs.

Sløk's analysis resonated with some figures in the AI industry, including Box CEO Aaron Levie, Dell CEO Michael Dell, and White House AI and Crypto Czar David Sacks, who all agreed with his view in X posts over the weekend. David Solomon, CEO of Goldman Sachs, also made a similar argument last week in a New York Times opinion piece.

An EY survey of 240 financial service CEOs, meanwhile, found that about 60% thought investing in AI would maintain or increase their staff head count in 2026.

These optimistic takes, however, seem to clash with recent reality. At least a dozen major companies have cited AI as a factor in staff layoffs this year. In February, Block CEO Jack Dorsey said the company was slashing its workforce from over 10,000 to under 6,000.

"We're already seeing that the intelligence tools we're creating and using, paired with smaller and flatter teams, are enabling a new way of working which fundamentally changes what it means to build and run a company," Dorsey said in a memo shared to X. "i had two options: cut gradually over months or years as this shift plays out, or be honest about where we are and act on it now."

Cisco, Atlassian, Cloudflare, Coinbase, IBM, and Snap are also among the companies that have cited AI as a reason for layoffs.

Nvidia CEO Jensen Huang, one of the pillars of the AI industry, has criticized companies that blame AI for layoffs. "I think the narrative that connects AI to job loss for many of the CEOs that are doing it is just too lazy," Huang told a media outlet in Singapore last week.

Altman has called the practice of blaming AI to reduce staff "AI washing."

In his blog post on Friday, Sløk said that, in his view, the current employment climate is an example of the "Jevons paradox," an economic theory that says as new technology increases the efficiency of a resource, the more that resource is consumed.

In this case, that resource would be human workers.

"It is Jevons paradox playing out in real time: cheaper technology is creating more demand and more jobs," Sløk wrote.

• Mark Zuckerberg's email struck an empathetic tone. He also said he didn't expect more companywide layoffs in 2026.
• Layoff anxiety can hurt worker productivity and morale, thereby carrying a real business cost.
• Workplace observers say his focus on stability suggests he recognizes the impact of prolonged uncertainty.

Mark Zuckerberg is signaling that Meta employees can stop looking over their shoulders.

After long emphasizing cost-cutting, management flattening, and "Year of Efficiency" rhetoric, the Meta chief struck an empathetic tone in his post-layoff email to employees on Wednesday — emphasizing stability, conceding communication failures, and promising to "do right by people along the way."

In his internal email to staffers, he thanked the roughly 8,000 workers who were being let go and emphasized his desire to provide "as much stability as possible" to those who remained.

It was a reminder that layoff anxiety carries a real business cost.

To that point, Zuckerberg said that he doesn't expect further companywide layoffs in 2026.

While that doesn't rule out smaller-scale cuts, the message followed weeks of grueling uncertainty for staffers waiting to learn whether they still had jobs.

Zuckerberg's email — a shift away from the more hard-charging tone he adopted post-pandemic — suggested he recognizes that prolonged uncertainty can weigh on employees and, ultimately, the company itself, workplace observers told Business Insider.

"You do need to try to create some psychological safety for people who are there, because layoffs are extremely distracting," said Amii Barnard-Bahn, a C-suite coach and consultant.

'We won't always get this balance right'

Wednesday's cuts were the latest challenge for a workforce that has spent years navigating repeated rounds of layoffs, heightened performance scrutiny, and persistent questions about whether AI would take their jobs.

It's a theme that has played out across tech, as companies increasingly tie cuts to AI and leaders warn about a white-collar bloodbath.

In 2025, the CEO told staffers in an all-hands meeting to "buckle up" for an "intense" year ahead. Some of Meta's layoffs have come with an added sting: Last year, the company also said it was cutting some 4,000 workers who had failed to meet expectations.

By the time the latest round arrived, the accumulation of uncertainty had drained some employees and left them wishing they were let go.

Meta didn't respond to a request for comment from Business Insider.

Zuckerberg's Wednesday message hit on the toll that uncertainty around staffing levels can take: "We won't always get this balance right, but I care deeply about this so we'll keep adjusting and work hard to do right by people along the way," he wrote.

It's not clear how effective Zuckerberg's softer tone might be, though he had little choice but to try to reassure those left standing, said Pav Stojkovic, an HR consultant and former chief people officer at several companies, including The Athletic.

Zuckerberg's approach is a departure from one he'd used previously. In 2022, for example, Zuckerberg told Meta staff he was upping performance goals to get rid of employees who "shouldn't be here."

By "turning up the heat a little bit," Zuckerberg said at the time that he hoped some workers would "decide that this place isn't for you, and that self-selection is OK with me."

Last year, Meta directed managers to place a higher proportion of employees in its bottom review rankings. Zuckerberg has a long-standing history of ratcheting up the pressure at Meta, reinforcing a blunt, survival-of-the-fittest culture at the social media giant.

The billionaire CEO is far from alone in embracing a sink-or-swim philosophy as AI reshapes the workplace.

A focus on execution

Zuckerberg's note comes at a transitional time for the industry. Excitement over the possibility of AI has mixed with fears over efficiency-driven job cuts and the encroachment of automation on workers' livelihoods.

As Meta reshuffles roughly 7,000 employees to focus on new AI initiatives, Zuckerberg needs a workforce concentrated on execution amid the AI arms race.

"Success isn't a given. AI is the most consequential technology of our lifetimes. The companies that lead the way will define the next generation," he wrote.

Barnard-Bahn said it's likely that productivity at the company took a big hit in the last month, as workers worried about whether they or their colleagues would be cut or reorganized.

By providing workers with a higher degree of job security for the next six-plus months, Zuckerberg might be offering employees something that Big Tech competitors have not.

"Meta has the talent, the infrastructure, the apps and distribution, and the business model," Zuckerberg wrote. "We have a lot of work ahead, but what's on the other side is going to be extraordinary."

• Meta previously announced it will cut 10% of its staff next month.
• Meta's HR chief told staff in a meeting that she can't promise further layoffs won't happen.
• She added that the business is strong and acknowledged that morale has been affected at Meta.

Meta plans to lay off around 10% of its staff next month, and it told staff it's not ruling out deeper cuts.

That's what Janelle Gale, Meta's chief people officer, told employees in an internal meeting on Thursday, according to three sources on the call.

"Will there be more layoffs? The question always comes up. I'd love to say that there are no more layoffs, but I can't say something we can't deliver," Gale said during the meeting. "While the business is strong, priorities change, competition is fierce, and we will continue to manage our costs responsibly."

She said this means that Meta will "continue to evolve teams as needed" and "try to redeploy talent." She pointed to how Meta is investing in its Applied AI organization.

Gale added that some organizations would be more affected by layoffs than others, though she did not specify which.

Meta leaders also said during the meeting that AI token usage would not be considered as a factor for the layoffs.

Meta CEO Mark Zuckerberg also addressed the layoffs at the meeting, saying that AI automation is not the driving factor behind them. He said that AI has made small teams far more efficient.

During the call, Zuckerberg also addressed Meta's plan to monitor employees' keystrokes and mouse movements to improve its AI models. He said humans are not actually watching what the staff are doing and that this data is abstracted and used to improve AI.

Meta AI Chief Alexandr Wang also appeared at the meeting, sporting a camouflage-pattern T-shirt featuring multiple deer, according to a photo seen by Business Insider. During the Q&A, he praised Meta's latest AI prowess, notably the recent release of its Spark model.

Meta declined to comment for this article.

Reuters reported in March that Meta plans to cut about 20% of its total staff this year.

Given the looming layoffs, Gale said at the meeting that they hit morale at Meta, and the company tries to make tough situations like that "the best version possible." She added that Meta has tripled COBRA healthcare coverage to 18 months.

Meta CFO Susan Li previously said during its first quarter earnings call on Wednesday that she "doesn't really know" the ideal size of the company's head count, which runs at above 77,000. Meta announced that its infrastructure spend, largely for AI, is doubling this year, to a range of $125 billion to $145 billion.

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Inside Meta, employees are facing 28 days of uncertainty before layoffs hit.

• Meta told staff on Thursday that it planned to eliminate 10% of its workforce.
• Inside the company, employees are bracing for weeks of limbo as they wait to find out who will be cut.
• Meta employees responded internally with a mixture of questions, concerns, and jokes.

Welcome to "28 days of hell."

That's how one Meta employee characterized the tech giant's announcement that thousands of jobs will be cut on May 20. Employees flooded internal forums with similar posts, many of which were filled with anxiety, dark humor, and questions as they wait to learn who will be out of a job.

"How are you motivating yourself to work for the next 1 month with layoffs confirmed?" one person posted on the anonymous workplace app Blind, in a section just for Meta employees.

Someone else replied, "I'm motivating myself to do stuff that I can put on my resume for my next job lol."

In a memo sent to staff on Thursday, Meta said it shared some layoff details earlier than usual because the news had already leaked. The company plans to cut around 10% of employees next month and close 6,000 open roles.

"I know this leaves everyone with nearly a month of ambiguity, which is incredibly unsettling," wrote Meta's chief people officer Janelle Gale.

For some Meta employees, the fact that company leadership acknowledged layoffs brought some relief. The layoffs had been so widely discussed internally that the announcement helped ease some uncertainty, according to one employee who declined to be named due to the sensitivity of the matter.

One of the top comments under Gale's internal Meta post was a picture of an elephant, a reference to leadership addressing the elephant in the room. Reuters first reported Meta was planning sweeping layoffs in March, and employees have been speculating on the extent of the cuts in the weeks since.

"elephant addressed!" commented another employee. Another posted a picture of an envelope that read: "Addressed to: "ELEPHANT."

Others said that having to wait almost a month to find out who would be affected created anxiety. One person posted that this was their first week at the company. "It might be goodbye for me," they wrote.

Another employee told Business Insider that the announcement added pressure for them to deliver results over the next month because it's unknown which teams will be affected by the cuts.

"I'm a little stressed about making impact in the next month," they said.

Despite a sense of added pressure, it's not the employee's first go-around with cuts at the company. The worker said they're going to continue working as usual, assuming the worst while trying to make the most of the next month as they wait for further updates.

"I assume I'm always two months away from being laid off, no matter what leadership says, so I'm going to continue to operate as usual," the employee said.

Employees also commented on Gale's internal post with questions.

One person asked if Meta staff would receive their August 15 stock payouts, which are part of some employees' compensation packages. Gale said that impacted employees would have a termination date prior to the August vest and would therefore not receive it.

"Because of the timing of the notifications, we will have just had the May 15 vest. There are some instances, based on work location, where people will remain employed through the August 15 vest," Gale wrote. Another employee thanked Gale for the clarification.

Another employee asked if travel would be restricted the week of May 20. "We are not restricting travel company-wide. VPs will share team-specific guidance," Gale responded.

'I feel more anxious about surviving'

On the Meta employee section of Blind, some users asked why Meta couldn't offer voluntary buyouts. Microsoft on Thursday offered one-time early retirement buyouts to thousands of its long-time employees, and Google has extended the same offers to staff across some orgs.

Many posts were from users asking others for information about which groups might be affected.

In a longer post, one user said the downside might be surviving the cuts.

"I feel more anxious about surviving this layoff," they wrote, recalling several rounds of layoffs at the company since 2022.

"Because we all know it's just gonna get worse for those of us who are left behind and have to absorb even more work, amongst other declining factors in this sad fearful company," they wrote.

• On Tuesday, Meta advised some employees to work from home. The next day, the company began layoffs.
• Getting laid off remotely offers privacy, but can feel isolating — for affected employees and survivors alike.
• Would you rather find out about layoffs in an office or while working remotely? Take our survey.

Getting laid off sucks, yet how it happens matters, too.

On Tuesday, Meta told some employees to work from home the next day, ahead of the company's latest round of layoffs. The move touches on an anxiety familiar to many: not only whether you'll get cut, but how — and where — you'll find out.

Six years on from the start of the pandemic, many desk workers remain in hybrid roles. That's shifted the mechanics of layoffs. What was once typically handled in a conference room or the boss's office might now unfold on a screen or by email.

As more companies trim their workforces, the question is carrying greater weight. It may not have an easy answer.

"You can have poor execution in person. You can have poor execution remotely," said Sarah Rodehorst, cofounder and CEO of Onwards HR, which helps companies manage severance and offboarding.

At home vs. IRL

Being at home can allow people to process the news on their own terms — without the risk of crying in front of colleagues. It can also pose fewer security concerns for companies worried about employees lashing out on their way out the actual door.

Making cuts from afar can also make it easier on managers, who don't have to directly face the person they're letting go, said Ben Hardy, a clinical professor of organizational behavior at London Business School.

"It's a bit like divorcing someone through text message," he said of cutting jobs where one person delivers bad news to many others. It's too impersonal, Hardy told Business Insider, for an intimate topic. One-on-one communication is better, he said.

Getting laid off in-person might mean trying to hold it together in front of colleagues, yet it can also give people a chance to say goodbye to coworkers and make plans to keep in touch — or gather afterward to commiserate.

Ultimately, what matters most is handling layoffs with empathy and preserving the human element, said Rodehorst.

Calling someone into an office only to lay them off might not always be the best decision, she told Business Insider.

"Remote can actually preserve some privacy," Rodehorst said.

Of course, layoffs generally feel awful in any case. Some workers have pushed back at cuts via video, saying that it feels impersonal.

What do you think?

How do you feel about where layoffs should take place? Take our poll.

• Epic Games announced it would cut over 1,000 employees, or about 20% of its workforce.
• CEO Tim Sweeney says the layoffs aren't AI-driven and that the company still needs software developers.
• He cited a 'downturn in Fortnite engagement' and said rising costs forced cuts.

Epic Games announced that it was laying off more than 1,000 employees, but the "Fortnite" maker's CEO says it's not because of AI.

Tim Sweeney said in a memo to employees shared online Tuesday that the cuts, affecting about 20% of its workforce, reflect industry-wide challenges, including slower growth, weaker spending, and tougher cost dynamics.

"Since it's a thing now, I should note that the layoffs aren't related to AI," he wrote. "To the extent it improves productivity, we want to have as many awesome developers developing great content and tech as we can."

A growing number of employers have recently cited AI as a reason for making deep cuts to their head counts. Recent examples include Block and Atlassian.

Tuesday's cuts, which come two years after Epic struck a $1.5 billion licensing deal with Disney, are significant, said Joost van Dreunen, CEO of the game-analytics firm Aldora Intelligence and a professor at New York University's Stern School of Business.

"It's an acknowledgement of the change in the industry that's taking place, particularly among American publishers, when one of the most popular game makers is finding itself having to let go of 1,000 people," he said. "It suggests that we're witnessing the decline of American cultural dominance in the video games industry."

Though the global games industry grew revenue — roughly 4.5% last year, according to Aldora — most of that growth came from outside the US, said Van Dreunen. "The consumer gravity point is moving eastward," he said.

The game industry's workforce has been contracting in recent years following a pandemic-era boom. An estimated 5,300 jobs were cut last year, and 14,600 were axed in 2024, according to an online tally of termination announcements and news reports by Farhan Noor, a technical artist in California.

Epic last had layoffs in 2023, affecting 16% of its workforce. Those layoffs were a first for the company, which was founded in the 1990s. In his memo, Sweeney indicated that the latest cuts are a painful necessity.

"The downturn in Fortnite engagement that started in 2025 means we're spending significantly more than we're making, and we have to make major cuts to keep the company funded," he wrote. "This layoff, together with over $500 million of identified cost savings in contracting, marketing, and closing some open roles puts us in a more stable place."

After having her first child, Lindsay Thomas went back to her full-time, in-office job. When a second kid came in 2024, Thomas says she knew she didn't want to juggle everything again, so she negotiated a part-time, remote version of her communications role in medical research — working anywhere from 2 to 40 hours a month — and started picking up freelance work on the side.

Now, when a kid gets sick and Thomas is up all night — something that would have made her "spiral," when she worked in the office —she knows she'll be at home with flexibility to schedule her day. If Thomas hadn't had the option to freelance, she says, she would have chosen to stay home with the second kid — even though she hadn't envisioned herself as a stay-at-home mom. "There are costs to everything," she says of leaving her full-time gig. "The cost to our family, the cost to the stress levels, to mental health, to going back to doing that and knowing what it was gonna feel like for all of us, especially with an older child involved," she tells me, "that was just a cost we didn't want to absorb."

After making employment gains during the height of the pandemic, women have begun a downhill slide out of the workforce. The number of working mothers of young children between 25 to 44 fell nearly 3% from January and June of last year, hitting its lowest rate in more than three years, according to a Washington Post report. In December, 91,000 women older than 20 dropped out of the workforce. The number of men over 20 employed jumped by 10,000 that month, according to an analysis of federal jobs data from the National Women's Law Center.

AI is also affecting America's gender imbalance in the workforce. A March report from Anthropic found that those who work in roles with a high exposure to AI automation are 16% more likely to be female, putting women more at risk for layoffs.

An uptick in return to office mandates is also disproportionately pushing women to choose whether they'll be able to stay in a job that requires a commute as they also balance after school pickup and domestic responsibilities. And a wave of mass layoffs has upended employment security, workplace loyalty, and the job hunt.

Women make 85% of what men make at work on average and take on twice as much of the domestic labor and caregiving tasks at home. "The real friction is we just haven't built systems that allow people to integrate their work and their lives and and their desires and what do they want their life to look like," says Brea Starmer, CEO of staffing firm Lions and Tigers, which focuses on fractional workers. "For anyone that doesn't fit this very specific narrow look and feel and mold, there is just not a lot of options." In a bleak job market, freelancing is one way working parents can claw back power. And as AI adoption transforms company needs and could shift the number of workers and hours needed to work, employers are starting to see more value in hiring part-time and contract workers.

There's autonomy in ditching the full-time gig; but it often means making a choice between several imperfect paths.

The pandemic showed that flexible, remote work benefitted parents, particularly women. As of 2023, 74% of mothers worked, up from 72% in 2019, according to the Institute for Women's Policy Research. But many CEOs who are calling workers back to the office have metaphorically shrugged at the costs to women. A survey from the freelance platform Upwork found that more than half of executives reported losing a disproportionate number of women after implementing RTO policies. Turnover among female employees at these companies is 82%, higher than those that allow for remote work. Nearly a third of women freelancers said RTO was a direct factor in leaving their full-time jobs. Forty-two percent of women who voluntarily left the workforce in 2025 cited caregiving and childcare costs as the main reason their choice, and these women were more likely than those who stayed employed to work at companies that did not offer flexible schedules, according to a survey from Catalyst, a nonprofit focused on women's progress.

But as many employers don't adapt to the needs of families, they're seeing the benefits in hiring freelance workers. Another survey of about 350 business leaders conducted by Upwork last fall found that 77% said AI was increasing the need for them to hire fractional, freelance workers with specialized skills. "What we historically saw was that business leaders were maybe a little more hesitant to embrace these kinds of non-traditional work models," says Gabby Burlacu, senior manager at the Upwork Research Institute. Now, "business leaders are far more open to working with the most skilled talent that they can, especially the most AI-enabled talent, because they're all trying to figure out: How are we going to unlock the value of this technology?"

It's hard to say how many people, and particularly women, are working in freelance roles. Upwork doesn't track gender of the freelancers on its platform, but tells me that in a recent report, 44% of knowledge freelancer workers were women, compared to 41% of people working similar jobs in full-time roles, among those they surveyed. Freelance marketplace Fiverr tells me there's been growth in areas like voiceover, user-generated content creation, and spokesperson or modeling projects specifically seeking female talent. In 2022, 9.8 million people were self-employed, according to the US Bureau of Economic Analysis. Other analyses of the freelance workforce estimate that as many as 75 million people participate in some capacity.

Working freelance has given women more flexible schedules and eased childcare costs, but that can also mean taking on even more unpaid household and caregiving labor.

Jaime Hollander previously commuted three to four hours a day roundtrip into Manhattan. She freelanced on the side, and split the care of two kids with her husband equally. Her mindset shifted after her father died in 2019. "You have those moments of reckoning where you're like, this can't be all that there is,'" she tells me. So, she cut back on work and shortly after quit her job. She focused on freelance marketing and copyrighting. The challenge with being a full-time freelancer, she tells me, is that the shift threw her into becoming "the default parent," on call for all of her kids' needs throughout the day. "If something has to get done between 7 and 7, I will do it," she tells me. "Sometimes, it's really challenging."

Paid parental leave has become more common, but just 40% of companies in the US offered it as of 2023, according to a survey from Society for Human Resources Management. A short period of leave tied only to the birth of a child doesn't answer for the flexibility working parents need as their kids age — there are sick days, potential disability diagnoses, and more hands-on needs at schools. "It's not just about retaining women in those early years," Neha Ruch, author of "The Power Pause: How to Plan a Career Break After Kids — and Come Back Stronger Than Ever." She says "there is recalibration happening" in the workforce, where more women may take fractional work, part-time roles, or freelance gigs. For companies, retaining women workers requires "thinking about parenting through the longitudinal experience of early parenthood," Ruch says, "going all the way up to college admissions and how and the demands that are made within the system on parents' time, and how we can make those work in the ecosystem of the professional space as well."

Many of the working parents I spoke to for this story chose the freelance or part-time route not upon having a kid, but as they grew up and demands of their families changed. When Erin Bartholomew's son was born, her husband stayed home to care for him. A few years later, she took her turn, wanting to have that hands-on time while her son was still young. She re-entered the workforce after a year into a remote job, logging on at 6 a.m. in Oregon to work in marketing for an East Coast company. But Bartholomew was laid off last year in 2024. Instead of searching for a similar role, she started her own marketing consultancy "It's so night and day," Bartholomew tells me. "It's allowed that balance that my husband and I really wanted."

As some women find flexibility in freelancing, others will be left out. Those who work in offices with 9-to-5 in-person mandates, or in education, retail, and healthcare roles, can't always make their own schedule. Parents who are the sole provider of income and health insurance for families often can't make ends meet working part-time. Others are pushed to stay at home with kids because the costs of childcare outpace their salaries. Leaving a full-time job can also disrupt a career trajectory toward leadership, and mean lost contributions to retirement accounts like 401(k)s. If companies don't adapt their schedules and remote work policies or future-proof roles for AI, many women will be forced to change how they think about their careers and priorities. They might not see going part-time or leaving a job as a choice they want to make, but something they have no choice in.

Amanda Hoover is a senior correspondent at Business Insider covering the tech industry. She writes about the biggest tech companies and trends.

• Companies are spending big on AI, but research shows most haven't seen measurable ROI.
• To offset those costs, employers can do layoffs — or trim line items like bonuses and stock awards.
• Workers can still make a case for a pay bump by emphasizing their value and AI chops.

AI may be putting more than just jobs on the line.

Companies are investing heavily in the technology and top-tier AI talent, and layoffs aren't the only option for offsetting those costs. At least one survey of US business leaders suggests that some are planning to cut workers' compensation.

"They have to pay for AI somehow," said Rocki-Lee DeWitt, a management professor at the University of Vermont's Grossman School of Business. "It ain't cheap."

Research firm IDC says companies with more than 1,000 employees are expected to spend an average of $13.7 million on AI hardware, cloud infrastructure, software, and services this year, a 78% increase from 2025, based on a global analysis.

Nvidia CEO Jensen Huang said on a recent episode of the "All-In Podcast" that he would be "deeply alarmed" if one of the chip giant's top engineers spent too little on AI tokens. In another episode of the same program, venture capitalist Chamath Palihapitiya expressed concern about ballooning AI bills at his startup.

Yet despite all that outlay, 95% of organizations reported no measurable ROI from AI in the first half of 2025, according to an MIT study based on reviews of publicly disclosed AI initiatives and executive interviews.

Until companies see tangible gains from their AI investments, they may need to rein in other expenses, especially as tariffs, high inflation, and other factors also strain budgets.

Cost-cutting options

Several companies have announced layoffs tied to AI in recent months — including Block and Atlassian — and others may be tempted to follow suit, Business Insider previously reported. In November, HP said in an earnings report that it planned to cut between 4,000 and 6,000 jobs by the end of 2028, saving the company roughly $1 billion.

Cuts to employee compensation may be next.

More than half of 866 executives and senior managers polled earlier this month by ResumeBuilder.com, 58%, said they plan to reduce employee compensation by the end of this year to help fund their AI investments. Bonuses and stock awards will be affected the most, followed by raises, benefits, and base salaries, the findings show.

Though such cuts could hurt morale, "employees don't have any leverage" due to the tight job market, said Jessica Kriegel, chief strategy officer at workplace consulting firm Culture Partners in Sacramento, California. "They will push back less, and they will accept smaller raises to avoid risk that feels real."

ResumeBuilder didn't cite the size of the companies where the respondents work, though small businesses are the most likely to take a hammer to employee pay or perks in lieu of making job cuts, said Kriegel.

"You can't just lay off 10% of your organization when you have, say 20 people, and everyone has got their hands in a million different pots," she said.

Another option for companies grappling with AI and other costs can be to hold compensation steady. The Conference Board, a nonprofit provider of data and insights for business leaders, expects average salary increases to stay at 3.4% this year, the same as in 2025.

Getting a raise anyway

Workers can still make a case for a pay bump amid the AI boom, said Kris Erickson, cofounder of consulting firm Workforce Science Associates in Lincoln, Nebraska.

"When budgets are tight, and the economy is uncertain, you have to get into sales mode" to successfully secure a raise, she said. "You have to make yourself invaluable."

Given how much money companies are spending on AI in search of productivity gains, highlight any you've realized from using it. Merely saying you know how to use AI is not enough, said David Gaspin, an HR professional and executive coach in New York.

"Asking for a raise because you're proficient in AI is not the strategy," he said. "That proficiency is table stakes at this point."

It's also important to show why AI can't fill your shoes.

"The key differentiator today is becoming: What can you do that can't be replaced with technology? Where is your experience, your judgment, your unique point of view adding tangible, quantifiable value to the business?" said Gaspin. "Because that's where companies are going to see risk in you leaving."

• Tejal Rives hoped adopting AI at work would help keep her safe from tech layoffs.
• However, she lost her job at Amazon during layoffs in October 2025.
• Rives was disheartened but was glad the experience taught her about AI.

This as-told-to essay is based on a conversation with Tejal Rives, 35, who lives in Arizona. The following has been edited for length and clarity.

In October 2025, I read a news article that Amazon was planning to cut jobs. I'd survived other layoffs, but this time my gut told me I'd be affected. Sure enough, not long after, I received an email that my position as a product marketer was being eliminated.

I was one of 14,000 people impacted, and even though I understood the decision wasn't personal, it was very disheartening. I thought up-skilling in AI would make me safer from layoffs, but even though it didn't, I still think professionals should focus on learning this one important AI skill: prompt engineering.

I thought working on AI could safeguard my job

At the time of the October layoffs, there was debate around whether AI was the reason.

The company was encouraging us to use AI at the time, but I don't think it took my job. I wrote descriptions for internal products at Amazon, and when I used AI to help, I'd need to ask it to rewrite its output without fluff words. It didn't sound like how people talk. Despite my ethical qualms, I used AI, but, in my opinion, it was nowhere close to replacing my role.

Before I was laid off, I helped build an internal site for Amazon using AI. I hadn't really coded before, but with a colleague's help, I learned how to vibe code with a lot of trial and error.

I thought using AI for this project and showcasing different skills would make me more valuable to the company, but in the end, it didn't keep me from being laid off.

Initially, I felt like I'd wasted time by learning something I likely wouldn't use again, but overall, I don't think my efforts were wasted. The most important thing the experience taught me was prompt engineering, the practice of asking AI the right questions. I want to be minimal with my use of AI for ethical reasons, including around the water resources needed to power data centers. Efficient prompt engineering helps me ask AI my question once, without needing to clarify three or more times.

I'd highly recommend that other professionals learn prompt engineering to up-skill themselves in the age of AI.

The workforce has shifted, and you're likely going to need to learn AI and use it at your job, regardless of your moral qualms. We need to up-skill to survive.

I have my own business, and use AI very rarely

My husband and I already agreed that if I were laid off, I'd focus on being the primary parent to our child as well as on my career coaching business, called Do My Resume LLC, which I was running on the side of my Amazon job. Before being laid off, I planned to eventually quit my job and focus on it full-time.

I didn't realize how burnt out I was after four years at Amazon, though, and it took me a while to pivot into working on my business. For roughly three weeks, I didn't touch my computer. I took up sewing and house-cleaning projects because I needed separation from my screen.

Now, my life is slower than it was at Amazon. I spend roughly four hours a day, six days a week, on the business, and spend the rest of my time taking care of the house and my family.

The business provides career coaching and résumé-writing services, but we don't use AI to write résumés, because it's humans who read them. Recently, I used AI to give me advice about starting a YouTube series for my business, so I will use this technology to help me flesh out ideas, but very rarely. I haven't vibe-coded since the project at Amazon.

My husband is the breadwinner, and we can survive on his income, but the business is bringing in some fun money for me.

I think people should prepare for layoffs in the age of AI

Being laid off helped me remember that, at the end of the day, your job and company shouldn't be your entire life. It shouldn't come before your well-being.

I wish I hadn't sacrificed time with my child to get projects done towards the end of my time at Amazon. I'm glad I'm no longer sacrificing that time.

I think there will be more layoffs that will be attributed to AI's efficiency, and professionals should always be prepared. Reskilling in the age of AI won't necessarily stop a company from laying you off, but it might help you land a role faster.

Amazon did not provide a statement in response to a request for comment from Business Insider.

Do you have a story to share about being laid off in 2026? Contact this reporter at ccheong@businessinsider.com

• Companies like HP and IBM have signaled they're replacing jobs with AI.
• In February, CEO Jack Dorsey announced that Block was eliminating approximately 40% of staff.
• Klarna's workforce has halved in the last four years, and its CEO says it will shrink more.

Worries about AI one day replacing human workers have intensified in recent years — and as it turns out, that future has already arrived.

MIT released a study last year that found that AI can already replace 11.7% of the US labor market. The study utilized a labor simulation tool called the Iceberg Index, which models 151 million US workers and measures how AI overlaps with skills in each occupation.

As AI starts to replace human workers and companies invest heavily in the tech, companies have been increasingly open about the role AI adoption is playing in recent layoffs. However, while some companies have directly cited AI as a reason for workforce reductions, others have vacillated with their messaging, leaving ambiguity around the exact reasoning and whether AI is directly replacing workers.

Even as some companies replace human workers with AI, they might end up hiring more people in other roles because of it. A World Economic Forum survey found that 41% of companies globally are expected to reduce their workforces over the next five years because of AI. Meanwhile, tech jobs in big data, fintech, and AI are expected to double by 2030, the WEF said.

Here's a list of companies that are replacing — or signaling they may replace — humans with AI.

Amazon

Amazon CEO Andy Jassy has said that AI-driven efficiency gains would shrink the retail giant's workforce in the coming years — but in the company's two recent mass layoffs, Jassy said the cuts were about culture, not AI.

"Our ambition is to be the world's largest startup," Amazon executives wrote in two memos viewed by Business Insider in January. "That means doubling down on a culture of ownership, speed, and experimentation — which requires us to continue evolving how we're structured."

An Amazon spokesperson also previously reiterated to Business Insider that the cuts last October were not driven by AI.

When the October layoffs were announced, Amazon's senior vice president of people experience and technology wrote in a blog post that the move reflected a continued effort to run the company "like the world's largest startup." The SVP, Beth Galetti, also referenced a need to be leaner in the age of AI.

"This generation of AI is the most transformative technology we've seen since the internet, and it's enabling companies to innovate much faster than ever before," Galetti wrote in the post.

Atlassian

Atlassian announced cuts of 1,600 jobs in March, totaling about 10% of its global workforce. The move comes as the Australian-American software company says it is restructuring to focus on AI and enterprise growth.

In a filing with the US Securities and Exchange Commission, the company said the reduction was part of a broader effort to reposition the business for what CEO Mike Cannon-Brookes described as the "AI era."

"It would be disingenuous to pretend AI doesn't change the mix of skills we need or the number of roles required in certain areas. It does," Cannon-Brookes wrote in a message to employees.

On the "20VC" podcast in October last year, prior to the cuts, Cannon-Brookes said he planned to have more engineers at the company in five years.

"They will be more efficient, but technology creation is not output-bound," Cannon-Brookes said.

Block

In a post on X last month, billionaire and Block CEO Jack Dorsey said he was slashing nearly half of Block's workforce, cutting its over 10,000-person staff to under 6,000. The move came as he said business was strong and profits were growing, but a new way of working was emerging.

"We're already seeing that the intelligence tools we're creating and using, paired with smaller and flatter teams, are enabling a new way of working which fundamentally changes what it means to build and run a company," Dorsey said in his memo on X.

In the company's earnings call that followed the memo, Dorsey said that more companies will follow suit in using AI to drive efficiency gains. Block is already ahead of the trend that "all companies will eventually" adopt, the CEO said.

Fiverr

Micha Kaufman, the CEO and founder of Fiverr, said last September that the company was slashing roughly 30% of its workforce. The cut would affect about 250 team members, and the freelancing platform had 762 full-time employees as of 2024, according to an SEC filing.

The CEO said that the cuts were needed to help turn Fiverr into a leaner and faster "AI-first company."

Kaufman said in a staff memo last April that AI was "coming for your jobs," and in May, he told Business Insider that Fiverr would only hire people who know how to use AI.

"If you don't ensure that you sharpen your knives, you're going to be left behind. It's that simple," Kaufman said.

HP

HP said it's reducing the size of its corporate workforce as a result of AI initiatives. In an earnings report last November, the company said it plans to cut between 4,000 and 6,000 jobs by the end of 2028, estimating the changes would save around $1 billion.

HP's earnings presentation at the time said part of its strategy was to cut costs through "workforce reductions, platform simplification, programs consolidation, and productivity measures" and to increase customer satisfaction, innovation, and productivity with "artificial intelligence adoption and enablement."

IBM

Arvind Krishna, CEO of IBM, told The Wall Street Journal last year that it had replaced hundreds of human resources employees with AI.

More recently, the company announced last November that it would cut thousands of workers in the fourth quarter of 2025, affecting a "single-digit percentage of its global workforce." Its CEO, Arvind Krishna, said the company is shifting priorities to hire more people around AI and quantum. He also said the company plans to increase hiring among recent college graduates over the next year.

Krishna has also said AI adoption has led to the company hiring more employees in programming and sales.

In 2023, Krishna told Bloomberg that IBM had halted or slowed hiring for back-office roles, like in human resources, that could be replaced by AI.

"I could easily see 30% of that getting replaced by AI and automation over a five-year period," he told the outlet at the time.

Klarna

Klarna's CEO says its workforce has halved over the last four years and will shrink further in the coming years.

In an interview with Harry Stebbings on the "20 VC" podcast on Monday, Sebastian Siemiatkowski said there are about 3,000 employees at Klarna, and he expects the company's workforce to drop below 2,000 by 2030. The company had 7,000 employees in 2022, he said.

The CEO said the reduction is a result of layoffs and "natural attrition," which is when the company doesn't replace workers who leave.

Siemiatkowski said on Monday that "human connection" will be vital for the company, and jobs involved in that will not be replaced by AI.

"Those jobs will remain, but for the rest it's going to be definitely smaller," he said.

Klarna declined to comment further when contacted by Business Insider. A spokesperson previously said that its AI assistant handles the equivalent workload of 853 full-time agents, up from 700 at launch. The spokesperson said it was saving the company an estimated $58 million annually.

Salesforce

Salesforce cut fewer than 1,000 workers in February, including employees from marketing, product management, data analytics, and its Agentforce AI product.

In an episode of "The Logan Bartlett Show" released last August, Salesforce CEO Marc Benioff said the company was using AI agents in its customer support division to replace humans and help the company work through more sales leads.

"I was able to rebalance my head count on my support," he said in the interview. "I've reduced it from 9,000 heads to about 5,000 because I need less heads."

A Salesforce spokesperson told Business Insider previously that Benioff was referencing an organizational transformation that took place over several months to reshape its customer support function.

After deploying Agentforce, the company no longer needed to "actively backfill support engineer roles," the spokesperson said, adding that it successfully redeployed hundreds of employees into other areas of the company, like professional services, sales, and customer success.

Wisetech

Zubin Appoo, the CEO of Wisetech, said the logistics software maker is cutting 2,000 jobs, or 30% of its staff, because of AI-led efficiency.

In a conference call on February 25, Appoo said that AI enables greater productivity in less time and with fewer employees. The Sydney-based company employed about 7,000 people, according to an annual report released in October.

"I am prepared to say this clearly: the era of manually writing code as the core act of engineering is over," Appoo said. The technology is "unlocking levels of efficiency gains across WiseTech that were previously out of reach."

In some parts of the workforce, such as customer service, one in two workers will disappear, he added.

Correction: December 1, 2025 — The bullet points of this article have been updated to clarify Amazon's statements about how AI may affect its workforce.