The first two months of 2026 saw widespread layoffs across tech, retail, finance, government, and manufacturing as organizations restructured, adopted AI, and responded to economic pressure. From Amazon’s Project Dawn to federal cuts, here’s what’s happening and what workers should do.
The first two months of 2026 have seen sweeping job cuts across multiple sectors as companies restructure operations, governments reduce spending, and organizations adapt to economic pressures and technological disruption. From Amazon's Project Dawn affecting thousands of workers to federal workforce adjustments in Canada and the United States, the layoff wave continues to reshape employment across industries.
This overview analyzes layoffs announced in January and February 2026, examining trends across industries, regions, and company sizes. It draws on official statements, reporting, and government labor data to inform workers, HR leaders, and business decision-makers.
The current wave of layoffs differs from previous downturns in several critical ways. Unlike the 2008 financial crisis or the initial pandemic shock of 2020, the 2026 layoffs are characterized by:
Strategic restructuring rather than emergency cost-cutting. Companies are making deliberate choices about their workforce composition based on long-term technology and market shifts.
AI-driven automation replacing not just routine tasks but increasingly sophisticated knowledge work. Roles in customer service, content moderation, data entry, basic coding, and administrative support face particular pressure.
Pandemic correction as tech companies that aggressively hired during 2020-2021 remote work surges now rightsize their operations to sustainable levels.
Efficiency mandates from boards and investors demanding profitability over growth, reversing the "growth at all costs" mentality that dominated the previous decade.
Government austerity as fiscal pressures lead to public sector workforce reductions in both the United States and Canada.
Let's examine what's happening sector by sector.
The technology sector continues to lead layoff announcements in early 2026, building on patterns established in 2023-2025 when the industry shed hundreds of thousands of positions globally.
Amazon initiated Project Dawn layoffs in January 2026, cutting positions across Amazon Web Services (AWS), Alexa, and retail divisions. The company continues workforce optimization efforts that began in 2023, citing efficiency gains and artificial intelligence automation reducing headcount needs in certain departments.
According to CNBC, Amazon is targeting middle management positions and consolidating teams to reduce organizational complexity. The premature email leak from AWS executive Colleen Aubrey revealed the scope of "Project Dawn" before official announcements. The company previously eliminated over 27,000 positions in 2023 and continues to optimize its workforce structure.
Oracle announced significant job cuts in early 2026 alongside an asset sale strategy. The restructuring affects cloud infrastructure and software development teams as the company pivots toward AI-focused services and seeks to streamline operations.
E-commerce platform Shopify cut jobs in January 2026, continuing a trend of tech companies rightsizing after pandemic-era hiring surges. The Canadian company previously laid off 20% of staff in 2023 and is now focusing on profitability over growth.
Social media platform Pinterest announced January 2026 layoffs affecting engineering and product teams. The company faces pressure to demonstrate monetization improvements and user growth after years of stagnant performance.
Gaming giant Ubisoft announced January 2026 layoffs affecting positions across multiple studios worldwide. The cuts come amid declining game sales, project cancellations, and a strategic shift toward live-service gaming models.
Meta announced another round of job cuts in early 2026, laying off approximately 1,500 employees from its Reality Labs division, representing about 10% of that team's workforce. TechCrunch reported the company is shutting down studios including Armature Studio, Twisted Pixel, and Sanzaru as CEO Mark Zuckerberg shifts focus from metaverse to AI development.
Google parent company Alphabet has conducted targeted layoffs throughout 2025 and into early 2026, affecting Google Assistant, hardware teams, and certain advertising roles as the company consolidates AI efforts under unified leadership while reducing investment in hardware products showing weak market performance.
Enterprise software company Salesforce has conducted workforce reductions affecting approximately 5,000 roles through 2025 and early 2026, according to Salesforce Ben, with particular focus on customer support roles as the company deploys AI agents.
Retail faces a perfect storm of challenges: shifting consumer preferences, e-commerce disruption, inflation pressures, and changing foot traffic patterns.
Nike-owned Converse is preparing February 2026 job cuts as sales hit a 15-year low, falling 30% last quarter to approximately $300 million. This follows Nike's broader 2024-2025 workforce reductions including 775 distribution center roles.
According to CNBC, Converse reported a 30% revenue drop in Nike's fiscal Q2 2026, with CEO Aaron Cain sending staff home ahead of planned layoffs. Several senior executives are leaving as the iconic sneaker brand faces intense competition.
Outdoor retailer Eddie Bauer announced February 2026 layoffs as brick-and-mortar retail faces continued pressure from e-commerce competition and changing consumer spending patterns.
Fitness technology company Peloton laid off approximately 286 employees (11% of staff) in January 2026 as part of ongoing restructuring to achieve profitability. The company has faced declining demand for connected fitness equipment post-pandemic.
Coca-Cola subsidiary Minute Maid announced February 2026 job cuts at production facilities, citing automation improvements and supply chain optimization.
Meat processor Tyson Foods conducted layoffs affecting plant workers and corporate staff, part of a multi-year restructuring plan addressing changing protein consumption patterns and operational efficiency.
Department store chain Macy's is executing its "Bold New Chapter" strategy, closing 150 underperforming stores through 2026. The company announced 14 additional store closures in January 2026 across 12 states, with clearance sales beginning mid-January. According to Retail Dive, CEO Tony Spring emphasized the closures allow the company to focus resources on 350 go-forward locations.
Financial institutions are cutting costs through technology adoption while dealing with economic uncertainty and regulatory pressures.
Citigroup announced 2026 layoffs affecting thousands globally as CEO Jane Fraser continues the "Bain reorganization" aimed at simplifying operations and improving profitability. The cuts hit middle management and back-office functions particularly hard.
Payment processor Mastercard announced February 2026 workforce reductions focused on corporate functions as the company invests in AI-powered fraud detection and payment processing automation.
Logistics giant UPS conducted 2026 layoffs affecting management and administrative roles. The company faces pressure from declining e-commerce shipping volumes and competition from regional carriers and Amazon's internal logistics network.
Government agencies on both sides of the Canada-US border are implementing workforce reductions amid budget pressures and political directives for efficiency.
Multiple Canadian federal agencies announced workforce adjustments representing one of the largest public sector downsizing efforts in recent history:
Public Services and Procurement Canada (PSPC) - Workforce adjustment announced January 2026 affecting procurement specialists, contract administrators, and support staff as the department streamlines operations and adopts digital procurement systems.
Canadian Food Inspection Agency (CFIA) - CFIA announced January 2026 layoffs affecting inspection staff and laboratory personnel as the agency reorganizes regional operations and implements risk-based inspection protocols.
Health Canada - Health Canada workforce adjustment in 2026 affecting regulatory review staff, policy analysts, and administrative positions as the department responds to budget constraints while attempting to maintain core public health functions.
Agriculture and Agri-Food Canada (AAFC) - AAFC announced January 2026 layoffs affecting research scientists, extension specialists, and program administrators as the department refocuses priorities and consolidates research facilities.
Additionally, federal public servants face a mandated return to office by July 2026, which may lead to additional attrition.
The IRS announced January 2026 layoffs affecting administrative and processing staff as the agency faces budget pressures and congressional scrutiny over spending levels.
Traditional media companies face existential challenges from digital disruption, declining advertising revenue, and changing content consumption patterns.
The Washington Post conducted February 2026 layoffs affecting newsroom and business-side staff. The newspaper continues restructuring under owner Jeff Bezos amid declining print advertising revenue and subscription challenges.
Canadian media conglomerate Bell Media announced 2026 layoffs across television, radio, and digital properties as traditional broadcasting revenue continues declining.
Educational institutions face enrollment challenges, funding pressures, and demographic shifts affecting staffing levels.
Brock University in Ontario announced February 2026 administrative staff layoffs amid provincial funding cuts and declining international student enrollment following federal visa policy changes.
Saskatchewan Polytechnic announced February 2026 layoffs affecting faculty and staff as the institution responds to budget pressures and changing enrollment patterns.
Traditional manufacturing faces pressure from automation, supply chain restructuring, and the electric vehicle transition.
General Motors' Oshawa, Ontario plant conducted layoffs as the company adjusts production volumes and transitions to electric vehicle manufacturing.
Steel fabrication and construction company ADF Group announced job cuts affecting Canadian operations as the company consolidates manufacturing capacity.
Healthcare organizations face financial pressures despite persistent workforce shortages in clinical roles.
Ottawa-based long-term care and veterans' facility Perley Health announced job cuts affecting healthcare workers and administrative staff as the organization responds to provincial funding constraints and rising operating costs.
According to analysis from major business publications and labor market experts, several converging factors are driving the current wave of workforce reductions:
Artificial intelligence tools are increasingly capable of performing tasks previously requiring human judgment. Customer service chatbots handle routine inquiries. AI coding assistants augment (and sometimes replace) junior developers. Content moderation algorithms reduce need for human reviewers. Administrative tasks from scheduling to expense processing are being automated.
Unlike previous automation waves that primarily affected manufacturing and routine clerical work, current AI capabilities threaten knowledge worker positions across industries.
Despite relatively low unemployment and continued GDP growth, business leaders express caution about economic conditions. Companies are cutting costs proactively rather than waiting for confirmed downturn, creating a self-fulfilling dynamic where layoff announcements themselves contribute to economic uncertainty.
Technology companies in particular hired aggressively during 2020-2021 when pandemic demand for digital services, e-commerce, and remote work tools surged. As these temporary demand spikes normalized, companies found themselves overstaffed relative to sustainable business levels.
Investor sentiment has shifted decisively from "growth at all costs" to demanding profitable operations and positive cash flow. The "zero interest rate phenomenon" that enabled unprofitable growth for years has ended, forcing business model rationalizations.
Public sector layoffs reflect budget constraints at all levels including federal governments in Canada and US facing pressure to reduce spending, and educational institutions adjusting to enrollment changes and funding cuts.
Physical retail continues structural decline as e-commerce captures greater market share. This represents not cyclical downturn but permanent industry restructuring requiring fewer workers to serve consumer demand.
Layoff impacts vary significantly by geography:
Tech Hubs Hit Hardest - San Francisco Bay Area, Seattle, Austin, and other tech centers see disproportionate impacts. Toronto and Vancouver face tech sector corrections.
Manufacturing Belt Continued Stress - Automotive transitions affect Michigan, Ohio, Ontario. Traditional manufacturing consolidation hits Midwest.
Public Sector Concentration - Ottawa faces federal government downsizing. Washington DC area affected by federal layoffs.
Retail Impacts Widespread - Mall-dependent communities face cascading effects from store closures.
Different sectors require different job search and career transition strategies:
Skills to emphasize:
Resume strategies:
Transferable skills:
Alternative paths:
In-demand skills:
Opportunities:
Transferable skills:
Alternative careers:
Valuable skills:
Alternative paths:
Our AI-powered scoring system helps organizations assess and standardize resume quality at scale. ATS-compliant templates support consistent formatting, keyword alignment, and interview readiness across cohorts.
If you've received a layoff notice or anticipate potential job loss, take these steps:
Document everything:
Preserve work samples:
Don't sign immediately:
Assess financial situation:
File unemployment:
Update resume immediately:
Optimize LinkedIn:
Reach out strategically:
Be specific in requests:
Target opportunities systematically:
Diversify search strategies:
General:
Industry-Specific:
United States:
Canada:
Resume and Application:
Skill Development:
Our AI-powered scoring system helps organizations assess and standardize resume quality at scale. ATS-compliant templates support consistent formatting, keyword alignment, and interview readiness across cohorts.
While layoffs often come with little warning, certain signals can indicate potential workforce reductions:
Organizational changes:
Financial indicators:
Communication shifts:
Laid-off workers have legal protections and rights:
WARN Act:
Discrimination protections:
Employment Standards:
Human Rights protections:
Beyond surviving a single layoff, build career resilience for an uncertain future:
Technical skills:
Human skills:
Business acumen:
Emergency fund:
Diversify income:
Manage fixed costs:
Stay connected:
Provide value first:
Update quarterly:
Stay interview-ready:
Labor market experts and economists offer varied perspectives on what's ahead:
Most analysts expect layoff announcements to continue through Q2 2026 as companies finalize annual budgets and restructuring plans.
The labor market may stabilize as companies complete restructuring initiatives and new business models emerge requiring different skills.
Structural changes will likely include:
Growing sectors:
Declining sectors:
Our AI-powered scoring system helps organizations assess and standardize resume quality at scale. ATS-compliant templates support consistent formatting, keyword alignment, and interview readiness across cohorts.
The 2026 layoff wave represents more than cyclical downturn—it reflects fundamental transformation in how work is organized, performed, and valued. Artificial intelligence, global competition, changing consumer preferences, and evolving business models are permanently altering the employment landscape.
For workers facing job loss, this moment is understandably stressful and uncertain. However, it can also represent opportunity to reassess career direction, develop new skills, and explore different industries or roles.
The resources, strategies, and support systems available to laid-off workers today far exceed what existed in previous economic disruptions. Government programs, online learning platforms, professional networks, and career tools make successful transitions more achievable.
As we move through 2026, expect continued labor market turbulence. Stay informed, stay prepared, and remember that career disruption increasingly represents the norm rather than exception. Build resilience, maintain flexibility, and focus on developing capabilities that create value regardless of employer or industry.
Team Yotru
Employability Systems & Applied Research
Team Yotru
Employability Systems & Applied Research
We build career tools informed by years working in workforce development, employability programs, and education technology. We work with training providers and workforce organizations to create practical tools for employment and retraining programs—combining labor market insights with real-world application to support effective career development. Follow us on LinkedIn.
Technology leads with Amazon, Oracle, Shopify, Pinterest, and Ubisoft cutting thousands. Retail follows with Nike/Converse, Eddie Bauer, and Peloton announcing reductions. Financial services (Citigroup, Mastercard, UPS), government agencies (Canadian federal departments, US IRS), and media (Washington Post, Bell Media) also face significant cuts. Manufacturing and automotive sectors see layoffs tied to EV transitions and automation.
This article is written for workers affected by 2026 layoffs across all industries, HR professionals managing workforce transitions, business leaders planning organizational changes, and anyone seeking to understand current employment trends. Provides comprehensive industry context, practical job search guidance, and strategic career planning advice.
Yotru content prioritizes accuracy and evidence-based guidance. Layoff reporting verified against Bloomberg, Reuters, CNN Business, official company announcements, and government labor statistics. Industry analysis reflects consensus among labor economists and market analysts. Updated as new information becomes available.
This article summarises 2026 layoff announcements using public reporting from outlets such as Reuters, Business Insider and Cheapism, along with specialist layoff trackers. Headcount figures reflect the most recent numbers available at the time of writing and may differ from final totals if companies revise their plans or announce additional cuts. Where possible, we attribute specific layoff numbers to a named source (for example, ‘Reuters reports that…’), and we focus on major, well‑documented announcements rather than every small workforce reduction.
For informational purposes only. Not legal, financial, or career advice. Severance packages, unemployment eligibility, and legal protections vary by jurisdiction, employment contract, and individual circumstances. Consult qualified legal counsel regarding employment rights and severance negotiations. Consult certified financial advisor for financial planning.
Yotru is not affiliated with any companies or organizations mentioned. External links provided for reference only. Yotru is not responsible for third-party content or its accuracy.
Labor market predictions and future outlook represent informed analysis based on current information but cannot account for unforeseen events or changes in economic conditions.
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