The software and tech industry continues to face significant workforce reductions in February 2026, driven primarily by the rapid adoption of artificial intelligence (AI) tools that enable companies to boost efficiency, automate tasks, and operate with leaner teams. This week’s headlines have been dominated by major announcements, highlighting a shift where AI is reshaping roles in software development, fintech, e-commerce, and beyond.
Major Layoff in Focus: Block Slashes Nearly Half Its Workforce
In one of the most dramatic moves this week (announced February 26, 2026), Block (the company behind Square, Cash App, and Afterpay) revealed plans to cut over 4,000 jobs — approximately 40% of its total workforce of more than 10,000 employees. This reduction will bring the headcount down to under 6,000.
CEO Jack Dorsey explicitly attributed the cuts to the embrace of “intelligence tools” (AI), stating that AI has fundamentally changed how companies operate by allowing smaller, highly talented teams to achieve more. In his shareholder letter and public statements, Dorsey predicted that many other companies will follow suit within the next year to capitalize on AI-driven productivity gains. Despite the layoffs, Block reported strong financial performance, and its stock surged over 24% in extended trading following the news.
This marks a bold, one-time deep cut (rather than gradual reductions) to maintain morale and customer trust while redirecting resources toward AI integration.
Other Notable Tech and Software Layoffs This Week/Recent Period
- eBay announced layoffs of about 800 roles (around 6% of its workforce) shortly after a major acquisition deal, as part of ongoing efficiency efforts in the e-commerce software space.
- Broader February 2026 trends include cuts in enterprise software, SaaS, fintech, and related sectors. For example, Australian software firm Wisetech Global planned to axe around 2,000 jobs (nearly one-third of its global staff) to integrate AI into operations and customer tools (announced late February).
- Cumulative tech layoffs in 2026 so far have impacted tens of thousands, with trackers reporting over 130 tech layoffs and nearly 50,000 affected roles year-to-date, averaging hundreds per day.
Why AI Is Driving Software Layoffs in 2026
The surge reflects a broader industry pivot:
- AI tools are automating coding, data analysis, customer support, and other software-related tasks.
- Companies are reallocating budgets from headcount to AI infrastructure and cloud platforms.
- Experts note this could accelerate job displacement in white-collar tech roles, though some leaders argue it creates opportunities for AI-skilled professionals.
For software engineers, developers, and IT professionals — especially in fintech, SaaS, and payments — upskilling in AI, machine learning, and prompt engineering may become essential for future job security.
Stay tuned for updates, as more announcements could emerge amid ongoing AI adoption. For the latest on global tech careers and relocation options (including opportunities for NRIs), visit www.nriglobe.com.
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