2026 Layoffs: Workday, Big Tech and Why They Keep Happening

Are layoffs really up in 2026? The numbers

It depends on which number you look at, and that's the confusing part.

Two different sources are doing different jobs here. Challenger counts announcements that employers make, many of them planned over months and some of them global. The Bureau of Labor Statistics counts actual layoffs across the whole economy, every month, from a survey. Challenger's list shows where the pain is; BLS shows how big it is overall. In BLS terms the layoff rate was 1.0% in August, which is ordinary.

What has changed is hiring. The hires rate is just 3.3%, and the quits rate of 1.9% matches the lowest since mid-2020, so people stay put because they're afraid of what's out there. So a layoff in 2026 hurts more than it used to, because finding the next job takes longer. Our piece on why the job market is so bad goes deep on that side of it.

What happened at Workday?

Workday, the HR and finance software company, has done two rounds of cuts this year.

February 2026. Workday laid off roughly 400 people, about 2% of its workforce, mostly in Global Customer Operations (customer success, support and implementation). A California WARN notice listed 154 people at its Pleasanton headquarters. A few days later, CEO Carl Eschenbach stepped down and co-founder Aneel Bhusri came back as CEO.

September 29, 2026. Workday told the SEC it was cutting about 2.5% of staff, roughly 525 people by most estimates, mainly in Product and Technology. The filing put the cost at $65 million to $80 million and described the changes as reorganizations "designed to better align team structures with Workday's strategic growth priorities." It also said the company "plans to continue to hire in key strategic areas and locations throughout its fiscal 2027." A WARN notice lists 142 people in Pleasanton, effective November 30.

A few things are worth knowing:

• Workday did not blame AI this time. Earlier, in 2025, the company framed a larger cut of about 1,750 jobs around an AI push. For both 2026 rounds, the filings talk about priorities and structure instead. Outside analysts connect the dots on their own: Workday's stock has been hit by the broad software selloff (more below).
• The headcount numbers vary by outlet. Workday doesn't publish an exact figure, so you'll see 500, 520 and 525. Treat them as estimates.
• The pattern matters more than the number. The February cuts hit customer-facing jobs. September moved to the people who build the product. That's a company telling investors it plans to run leaner at every level.

If you work at Workday, or at a company that lives off Workday, the WARN dates and your severance paperwork matter more than any headline. There's more on that further down.

Which other companies have cut jobs in 2026?

A running list of the larger cuts, from the Yahoo Tech layoffs tracker, company filings and press reports. The reasons are what the companies said, not necessarily the whole truth.

Notice the range. Some companies say the quiet part out loud ('making room for AI spending'). Some say it isn't AI at all. Some don't say. That mix is the clue to the next question.

Why is this happening?

There isn't one reason. Here are the main ones, with the ones backed by the best evidence first.

1. Companies are paying for AI by cutting people. Meta said it was making room for AI spending. Oracle's cuts were tied to the cost of building AI data centers. Intuit and Atlassian both describe cuts as a way to fund AI bets. The money has to come from somewhere, and payroll is the biggest line on the budget.
2. Software companies are under pressure from investors. In late January, fears that AI agents could do work that businesses pay software companies for triggered what traders called the "SaaSpocalypse". The S&P 500's software and services index lost around $1 trillion in value from January 28. Salesforce fell about 41% in the first half of the year, even though it beat expectations. Workday has been hit with the rest of the group. When your stock is down and Wall Street wants proof of discipline, headcount is the lever.
3. "AI" makes a better story than "we hired too many people." Challenger says AI is the top stated reason for cuts so far this year. But a Resume.org survey of 1,000 US hiring managers reported by HR Dive found that nearly 6 in 10 say they frame layoffs or hiring slowdowns as AI-driven because it plays better with stakeholders. Economists call this AI-washing. The real mix, according to the same body of research, is a blend of overhiring during the boom years, ordinary cost cutting and genuine automation. Challenger also keeps a separate category for cuts where AI is implied but not confirmed. And it's worth noting that AI's share of cuts has dropped in recent months; September had it as only the fifth most-cited reason.
4. There's a real AI effect, but it's narrower than the headlines. The Stanford "Canaries in the Coal Mine" study (Brynjolfsson, Chandar and Chen) found a 13% relative drop in employment for 22–25-year-olds in the most AI-exposed jobs since generative AI spread. That's real. It also shows up as fewer new hires rather than mass firings. We cover it in will AI take my job?
5. Companies are flattening. Uber talked about removing layers. PayPal described removing layers and speeding up AI adoption. Fewer managers, bigger teams. That hits middle management and project-coordination roles harder than front-line work.
6. Some companies are just doing worse. Epic Games said Fortnite engagement dipped and it was spending more than it earned. Etsy said AI wasn't the reason. A layoff isn't always a signal about the future of work; sometimes the business has a bad year.

The honest summary is that nobody outside the boardrooms knows the exact mix at any single company. Be skeptical of any layoff story that has a single villain, whether it's AI, interest rates or 'bad management.'

Who is getting hit hardest?

Challenger's year-to-date data for 2026 shows how uneven it is:

• Technology: 165,925 cuts, up 54%.
• Transportation: 44,430, up 190%.
• Down sharply: government (down 92% after 2025's cuts), retail (down 83%), warehousing (down 53%), telecom (down 64%) and services (down 51%).

Inside companies, the pattern is the roles that sit between the product and the customer: customer support, customer success, operations, recruiting, marketing, middle management and some legal and HR work. Workday's February round hit exactly that group.

If you're wondering whether you're in the blast radius, our corporate survival tips include a layoff-proofing checklist.

What are people saying about the layoffs on Reddit?

Disclaimer: Treat each thread as one person's account, not as proof.

• "Don't do the work of the people who got cut." After Oracle's cuts, a widely shared Reddit post told remaining staff not to work extra hours to cover laid-off colleagues, arguing that unpaid overtime makes the cuts look justified. The poster said missed deadlines would show what the layoffs really cost. Replies split into two camps: some agreed, some said just update your résumé. One commenter reportedly wrote, "Invest in yourself and be ready for interviews."
• "Who actually got laid off?" In January, a post on r/AmericanTechWorkers claimed that in two rounds of Amazon layoffs, only the US citizens on the poster's team were let go, and renewed the H-1B debate. The claim was unverified, and Amazon didn't comment. It spread because it tapped something real: a lot of people feel they can't see how the decisions are made.
• "I'm the only income in my house." A 2023 graduate laid off after a product shutdown posted about the shock, and replies from strangers shared their own stories, including the stress of being the only earner in a household.
• "This is probably fake." A September post claimed a US bank fired 80 India-based customer service staff on a five-minute video call. Commenters questioned it, because it couldn't be verified. Layoff stories travel faster than fact-checks.

Across these, a few themes keep coming back:

1. Distrust of the AI explanation. People suspect AI is a cover story for cost cutting and say so.
2. Survivors who are exhausted. The ones left behind take on the extra work and get no extra pay.
3. Anger about how it happens. The bank story above is about a five-minute video call; whether or not that one is true, people have plenty of their own versions.
4. A wait-and-search mindset. "Keep your résumé fresh" shows up in nearly every thread.

The surveys match the vibe. In an iHire poll of 589 job seekers in early 2026, 23% said they were anxious about losing their job this year. An older Harris Poll for outplacement firm INTOO reported 61% of employed Americans with layoff anxiety in 2025, though a firm that sells outplacement has reasons to ask the question.

What should you do if you get laid off?

1. Don't sign anything on the spot. Severance agreements usually give you days to review. Read it, and consider asking an employment lawyer, especially if it includes a release of claims.
2. Check for WARN notice. Under the federal WARN Act, employers with 100 or more employees generally must give 60 days' notice before a mass layoff or plant closing. Some states have stricter laws. If you were let go without notice, ask HR why, and check your state's rules.
3. Ask about severance, vacation payout, bonuses and equity. Vesting dates and payout rules are negotiable more often than people think.
4. File for unemployment right away. Do it the same week. Severance doesn't always block it, and the clock starts when you file.
5. Sort health insurance. Compare COBRA with your spouse's plan or the marketplace. Losing a job is a qualifying life event.
6. Get your files and contacts, within the rules. Take your personal documents, performance reviews and LinkedIn connections. Don't take company data.
7. Ask for references and a LinkedIn recommendation before you leave. People are generous on the way out and forgetful a month later.
8. Tell your network early. Most jobs come through people. Be specific: "I'm looking for a product marketing role in healthcare software" gets better responses than "I'm open to anything."

Need a few lines for the awkward conversations? Our list of HR approved ways to say things at work covers a lot of them, and if you're negotiating, the templates in how to ask for a raise work for severance asks too.

What if you survived the layoff?

Being kept doesn't feel as good as people expect. You're relieved, a bit guilty, and now doing the work of three people.

• Ask what has changed in writing. "Can you confirm my priorities for the next quarter given the changes?" is a polite email that doubles as a paper trail.
• Don't quietly absorb everything. Name the trade-off: "I can take this on if X moves to next quarter. Which one do you want?" Managers often haven't done the math.
• Keep your network warm. Stay in touch with people who left. They're your future references and sometimes your future bosses.
• Update your résumé now, while you remember what you did this year. It takes an hour and it's the best insurance there is.
• Watch the politics. Reorgs bring new power plays. Our office politics survival guide has scripts for credit theft and getting thrown under the bus.

Questions people ask about 2026 layoffs

Start here

If you or someone you know is in the middle of this, HR Approved Corporate Therapy is a funny guide to workplace stress and pretending to be fine, and it's a kind gift for a friend who's been laid off or is waiting for the axe. For the awkward emails and meetings that follow a reorg, Ways to Say Things I Can't Say Out Loud has the phrases. For a coworker who needs a laugh, the Corporate Sarcasm desk calendar is one joke a day. And if the one who needs cheering up is a cat person, Office Survival Explained by Cats is the gentlest book we make.

These are Amazon affiliate links. If you buy through them, we may earn a small commission at no extra cost to you.

Next, read why the job market is so bad right now for what job seekers are facing, and will AI take my job? for which roles are most at risk.

Sources

• Workday, Inc., Form 8-K (September 29, 2026), SEC EDGAR
• Challenger, Gray & Christmas, Job Cuts Fall in September; Hiring Plans Up 3% Over 2025 On Weak Early Seasonal Hiring (October 1, 2026)
• U.S. Bureau of Labor Statistics, Job Openings and Labor Turnover Summary, August 2026 (released September 29, 2026)
• Yahoo Tech, Tech layoffs 2026: Tracking all the job losses (updated October 20, 2026)
• American Bazaar, Workday to cut 2.5% of workforce, affecting about 525 employees (September 30, 2026)
• KORE1, Workday Layoffs 2026: What the Customer Ops Cut Means (a staffing firm's blog; used for the February round)
• tech.co, Workday Announces 1,750 Layoffs As It Focuses on AI (2025 round)
• Nasdaq, Why Salesforce plunged over 40% in the first half of 2026
• heise, "AI eats Software": Why SaaS stocks are crashing on Wall Street
• HR Dive, Companies hiring and firing in 2026 (Resume.org survey of 1,000 US hiring managers)
• Brynjolfsson, Chandar & Chen (Stanford Digital Economy Lab), "Canaries in the Coal Mine? Six Facts about the Recent Employment Effects of Artificial Intelligence" (2025)
• Business Today via Benzatine, Oracle layoffs spark controversial advice among employees (April 4, 2026; reports an anonymous Reddit post)
• American Bazaar, Boycott Amazon calls grow after claims Americans were laid off for H-1Bs (January 30, 2026; reports an unverified r/AmericanTechWorkers post)
• iHire, 23% of workers worried they'll be laid off in 2026
• U.S. Department of Labor, WARN Act: Employer's Guide to Advance Notice of Closings and Layoffs