“This has been our hardest year yet.”
That was Canva CEO Melanie Perkins on 4th November, announcing cuts and role changes affecting about 22% of the company’s workforce, roughly 1,271 people (TechCrunch).
Two days earlier, Squarespace had let go of nearly one in five employees. The week before that, it was Dropbox. Before that came eBay, Electronic Arts, Netflix, Amazon and HubSpot. And over all of it hangs Microsoft, which has cut more than 5,000 roles this year and has now offered exit packages to 60,000 more.
Through September alone, US tech companies announced 165,925 job cuts, 54% more than at the same point last year (Fast Company).
Everyone already knows that tech layoffs are happening. What people are looking for is a guidance on what to do next.
Microsoft layoffs 2026: the loudest story of the year
Microsoft began the year with a voluntary retirement programme. In July, it cut about 4,800 roles, mostly in its Commercial and Xbox teams (KUTV). In September, around 500 more followed, and a state filing listed software engineers, data scientists, product managers and technical writers among those affected (TheStreet).
Then, on 26th October, Microsoft did something it had never done before. It offered a paid voluntary exit to about 60,000 eligible employees across the US, UK, Canada and India. Employees in India have until 1 December to decide.
“The Voluntary Exit Offer is new for us,” wrote Chief People Officer Amy Coleman. “We’ll learn from it.” (ThePrint)
For India’s tech professionals, that puts Microsoft at the centre of this year’s IT layoffs conversation.
Amazon, Canva and more: a season of tech layoffs
Microsoft wasn’t alone. Look closely at the past three months and three things stand out.
It’s not one kind of company.
Ride-hailing, e-commerce, streaming, software, design tools and gaming have all been hit. Uber cut about 3,300 roles. Amazon, eBay, Netflix, HubSpot and Dropbox followed in October, and Squarespace and Canva opened November (Fast Company, TechCrunch).
It’s not one kind of role.
Engineering, data science, product, marketing, design, legal, HR and technical writing have all been affected. Microsoft’s state filing alone listed software engineers, data scientists, product managers and technical writers (TheStreet).
It’s not one country.
Amazon’s cuts covered the US, India and the UK, and Microsoft’s exit offer includes employees in India.
So if you’re wondering whether your role or your company is safe, no sector or function has been entirely spared. That’s why the reasons behind these cuts matter more than the headlines themselves.
What’s really driving the tech layoffs
The money is moving to AI.
Microsoft spent nearly $116 billion on property and equipment in fiscal 2026, up from about $64.6 billion the year before, as it builds out cloud and AI infrastructure (TheStreet). At Canva, rising AI costs were one reason the company lowered its revenue growth forecast from 30% to 20% (TechCrunch). When budgets shift that dramatically, headcount is usually where companies look for balance.
Companies are getting flatter.
Microsoft plans to cut Xbox down to five management layers or fewer. Canva is merging its product, growth and platform teams. Squarespace wants to “move faster.” The common goal is fewer layers, fewer handoffs and quicker decisions.
AI-native competitors are changing markets.
Squarespace is up against a new wave of AI website builders. Canva is competing with chatbots that can now generate posters and presentations on their own. Companies whose markets are being disrupted are reshaping themselves to keep up.
AI is changing how work gets done.
Microsoft has said its eliminated roles are not being replaced by AI, but Coleman acknowledged that “AI is changing how work gets done” and that “some of the tasks we do every day can now be automated.” Across all industries, AI has been cited in more than 120,000 US job-cut announcements this year, about 21% of the total, according to Challenger, Gray & Christmas (Fast Company). Outside tech, Barclays has tied 5,000 job cuts directly to AI-driven cost savings (Briefs). That’s why so many headlines now call them “AI layoffs,” even when companies say otherwise.
Why even growing companies are laying people off
Here’s the part that surprises most people: not every company on this list is struggling.
eBay said its cuts were about shifting resources “to its fastest-growing areas.” Netflix’s co-CEOs said the business remains strong, while calling on the company to be “disciplined in allocating its people and resources” (News Karnataka). Microsoft is cutting roles in the same year it’s investing record amounts in its future.
So these layoffs aren’t only about survival. They’re about redirection. Companies are pulling people and budgets away from some areas and putting them into others, mostly cloud, AI and data.
That matters if you’re one of the people affected. A layoff in 2026 says much more about where a company is placing its bets than about how good you are at your job. The roles hit this year cover engineering, data science, product, marketing, design and technical writing. Skilled people across every function are being caught in the shift.
It also points to where the opportunities are going.
What to do after a layoff: 6 practical steps
- Take a breath, then handle the essentials.
If you’ve just been laid off from a tech job, start here. Before you think about your next role, get clear on your severance terms, health cover and any deadlines. If you’re a Microsoft employee in India weighing the exit offer, that deadline is 1 December. A clear head now makes every decision after it easier.
- Follow the money.
The same companies that are cutting jobs are pouring money into cloud, AI and data. Those are the areas still hiring, and cloud and AI skills are where your next role is most likely to come from.
- Build on what you already know.
Your experience doesn’t disappear. A developer who learns cloud architecture, an analyst who learns AI tools, or a product manager who understands generative AI isn’t starting again. They’re adding the layer employers are asking for right now.
- Show proof, not just interest.
Upskilling after a layoff works best when you have something to show for it. Recruiters see “learning AI” on a lot of profiles. What stands out is a recognised certification, backed by hands-on practice you can talk about in an interview.
- Update your story.
Lead your resume and LinkedIn with the new skill, not just your last job title. Make it clear where you’re heading, not only where you’ve been.
- Use Whiz Step Up to Upskill at a Lower Cost.
Whiz Step Up is Whizlabs’ upskilling programme for laid-off tech professionals. It gives you a personalised certification path, built around your last role and the one you’re aiming for, plus up to 80% off Whizlabs courses. It’s an easier, more affordable way to get certified and make your career change after a layoff.
What is Whiz Step Up by Whizlabs?
Whiz Step Up is a Whizlabs career transition programme for tech professionals who have recently been laid off. It brings together the two things people need most at this stage: clear direction on which cloud and AI certifications to pursue, and discounted certification courses to get started. It’s available in more than 180 countries.
How it works
- Fill out a short form.
It takes about two minutes. Tell us your last job title, the role you’re aiming for, and the certification you have in mind, if you have one.
- We review your background.
A Whizlabs cloud engineer looks at where you’re coming from and where you want to go, then maps out the certifications that fit, in the order that makes sense, based on current hiring trends.
- Get your plan and coupon.
Your personalised certification path and discount coupon arrive in your inbox within three business days.
- Choose your option and start learning.
- Annual Subscription, up to 50% off: 350+ courses, 25,000+ practice questions, 1,000+ hands-on labs and sandboxes. This is the best fit if you want to explore before committing.
- Individual courses, up to 80% off: the full course with video training, practice tests, hands-on labs and a sandbox, for the one certification you’re targeting.
Get My Step Up Plan →
What you get in a Step Up plan
A Step Up plan isn’t a list of course links. It’s a learning path built around where you are and where you want to go. Each plan includes:
- A path built around your goal. It starts from the skills you already have and the role you’re aiming for, not a generic template.
- The right order. Certifications are sequenced so each one builds on the last, with prerequisites clearly flagged so you don’t take an exam too early.
- Plain-language notes on every course. What it covers and why it matters for your target role.
- Up-to-date guidance. Cloud platforms rename and retire products all the time, so your plan uses current names, which means you’re never studying something that no longer exists.
- A visual roadmap. See your whole journey at a glance.
- Hands-on practice built in. You’ll know which labs and sandboxes to use, so you get real practice alongside every certification.
- Someone to ask. If your priorities change or you have questions about the sequence, our team can adjust the plan.
The next move is yours
The headlines will keep coming. More companies will restructure, and more teams will be reshaped around AI and cloud.
You can’t control the announcements. But you can decide what you do after one, and the people who come back strongest are usually the ones who choose a direction early and start building toward it.
Get My Step Up Plan →
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