Tech Layoffs Surge 51% as Amazon, Block Cut Thousands, With AI Cited in Over 12,000 U.S. Job Losses in 2026

Tech layoffs surge 51% in early 2026, with Amazon cutting 16,000 jobs and Block slashing its workforce nearly in half, as AI is officially blamed for over 12,000 U.S. job losses — though analysts warn companies may be using AI as cover for deeper financial struggles, prompting Congress to introduce new worker retraining legislation.

• The tech industry reports 33,330 layoffs in the first two months of 2026, a 51% increase from the prior year, with Amazon cutting 16,000 roles and Block slashing its workforce from 10,000 to just over 6,000 employees, citing AI-driven productivity gains.
• AI is officially cited in 12,304 U.S. job cuts so far in 2026, though analysts warn that 'AI-washing' may be masking other factors such as over-hiring, financial pressures, and broader economic uncertainty.
• Federal Reserve officials and members of Congress are closely monitoring AI's impact on the labor market, with new legislation being introduced to fund worker retraining programs and trigger government responses if unemployment surges past 5.5%.