Stock Markets February 25, 2026

Corporate America Extends Workforce Reductions in Early 2026 as AI-Driven Efficiency Push Continues

Major U.S. firms across technology, retail, manufacturing and finance announce job cuts and restructuring tied to artificial intelligence reallocations and cost reduction efforts

By Sofia Navarro PINS ADSK META AMZN ANGI
Corporate America Extends Workforce Reductions in Early 2026 as AI-Driven Efficiency Push Continues
PINS ADSK META AMZN ANGI

The opening weeks of 2026 have seen a wave of workforce reductions at U.S. companies as businesses reallocate resources toward artificial intelligence and other strategic priorities. High-profile cuts include Amazon’s January 28 announcement of 16,000 job eliminations globally, while a range of other firms in technology, consumer and retail, manufacturing and finance report layoffs, plant closures and organizational restructurings aimed at improving operating efficiency.

Key Points

  • Major U.S. technology firms and other corporate sectors announced workforce reductions in early 2026 as companies shift resources toward artificial intelligence, cloud platforms and other strategic priorities.
  • Layoffs span multiple sectors including technology, consumer and retail, manufacturing and finance, with notable actions from Amazon, Meta, Dow, Citigroup, FedEx and Nike.
  • Restructuring initiatives include targeted role eliminations, plant closures and operational overhauls aimed at improving operating efficiency and profitability.

Corporate America has begun 2026 with widespread workforce adjustments as companies streamline operations and shift spending toward artificial intelligence and cloud priorities. The moves span technology, consumer and retail, manufacturing and financial firms and include both targeted role eliminations and broader restructuring programs.

Below is a company-by-company accounting of announced job reductions so far in 2026, organized by sector with the details disclosed by each firm in public notices and reports.


Technology

  • Pinterest - January: About 780 positions cut, representing less than 15% of its workforce, as the company reallocates resources to roles focused on artificial intelligence and related strategy.
  • Autodesk - January: Approximately 1,000 positions, roughly 7% of the workforce, removed as the company redirects spending toward its cloud platform and artificial intelligence efforts.
  • Meta - January: An unknown number of cuts in its Reality Labs division as the company shifts emphasis to wearables and virtual reality products; the division is expected to reduce staff by roughly 10% according to reporting.
  • Amazon - January 28: Announced 16,000 job cuts worldwide in its second major reduction round within three months. This reduction is part of a broader corporate goal to trim some 30,000 roles overall, with the 16,000 figure amounting to nearly 10% of corporate employees.
  • Angi - January: About 350 positions eliminated as the company pursues AI-driven efficiency improvements.
  • Washington Post - February: Announced a reduction in news coverage and staff, with the specific workforce impact described as shrinking third-party coverage; the total number affected was not specified.
  • Workday - February: An approximate 2% reduction in staff as the company realigns resources toward top priorities.
  • C3.ai - February: About 307 positions, representing roughly 26% of the workforce, removed as part of a restructuring under the new CEO to improve operating efficiency.

Consumer and Retail

  • Home Depot - January: Around 800 roles eliminated as part of efforts to improve efficiency.
  • Nike - January: Approximately 775 positions cut as the company consolidates its operations footprint; these reductions primarily affect distribution center roles in Tennessee and Mississippi, according to a source familiar with the matter.

Resources and Manufacturing

  • Dow - January: A restructuring affecting roughly 13% of the workforce, totaling about 4,500 positions, intended to lift profitability by at least $2 billion.
  • Tronox - January: About 550 roles eliminated due to the closure of a pigment plant in Fuzhou, China, a decision tied to weak Chinese domestic demand and rising costs.
  • FedEx - January: Up to 500 positions affected as the company overhauls operations in France and trims its station footprint there.

Logistics and Delivery

  • United Parcel Service - January: Up to 30,000 roles within Amazon Service and lower-margin delivery volumes were cited in connection with workforce reductions; the listing indicates UPS will reduce personnel tied to such volumes, though the precise figure per UPS was described as up to 30,000 in the broader context.
  • Peloton Interactive - January: About 11% of staff eliminated as part of cost-cutting measures tied to a turnaround effort.

Finance and Other

  • Citigroup - January: About 1,000 jobs to be cut as part of a plan announced previously to reduce the workforce by 20,000 by 2026; the 1,000 figure was disclosed by a source familiar with the matter.
  • Mastercard - January: Roughly 4% of staff impacted as the company refocuses investments in other areas.
  • Gemini Space Station - February: Up to 200 positions affected as the operation winds down some international activities to support a path to profitability.

Several companies explicitly linked the workforce reductions to a reallocation of spending toward artificial intelligence, cloud services and other strategic priorities. Others framed the moves as cost-saving or profitability-improvement measures, including plant closures tied to weak regional demand and higher operating costs.

Where firms provided percentages or counts, those figures have been included above. For some announcements the exact number of roles affected was not disclosed and is described here as reported.

Risks

  • Further restructuring and job cuts may continue as companies reallocate spending toward AI and cloud investments - impacts likely concentrated in technology and related corporate support roles.
  • Manufacturing and resource sector risks include plant closures and reduced output tied to weak regional demand and rising costs, as illustrated by the Fuzhou pigment plant closure announced by Tronox.
  • Operational downsizing in logistics and retail could compress service capacity and affect low-margin delivery volumes, as seen in the announced reductions tied to delivery operations.

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