- More and more companies are laying off employees, citing AI as the reason
- Freshwords reduces its workforce by 11%
- Coinbase is reducing its number of employees by 14%
Artificial intelligence is being cited as the cause of more job losses as two more companies join the list of technology companies laying off employees in 2026.
Freshworks has announced it will cut 11% of its workforce, or about 500 jobs, as the company tackles routine work with artificial intelligence and automation.
Coinbase will also lay off about 14% of its workforce, or 700 jobs, as the company moves toward becoming “AI native.”
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Layoffs approach 100,000 in 2026
Layoff tracker Layoffs.fyi puts the total number of tech job layoffs at 93,294 so far in 2026.
talking to PakGazetteDennis Woodside, CEO of Freshworks, said the workforce reduction was because the company saw artificial intelligence and automation reducing routine work.
“More than half of our code is written by AI,” he said, adding that the company’s use of automation had reduced the “memory work that technology can take care of.”
Coinbase pointed to market factors and artificial intelligence as the joint causes behind reducing its workforce, and CEO Brian Armstrong published a blog post explaining the reasoning behind the decision. “We are adapting early and deliberately to rebuild Coinbase to be agile, fast and AI-native,” Armstrong said.
March 2026 was the worst month for layoffs in the tech sector since 2024, and in many cases AI is commonly cited as the root cause or a contributing factor. While Nvidia CEO Jensen Huang may say that AI creates jobs and that “AI condemners” are shedding a negative light on the technology, metrics on the number of layoffs are less confusing than the number of jobs AI has created.
Meta recently announced that it was cutting its workforce by 10%, or about 8,000 jobs, as the company tries to address the rapid increase in AI spending in data centers and computing.
This reduction would act as the first phase of an earlier announcement by Meta CEO Mark Zuckerberg in March 2026, which said the company could see its workforce reduced by up to 20%, or 16,000 jobs, as AI technology increases efficiency.
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