Tech Sector Layoffs Accelerate in 2026
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Should l Buy AMZN?
Source: seekingalpha
- Layoff Acceleration: According to Layoffs.fyi, over 26,000 employees have been laid off in the tech sector in 2026, indicating a significant increase in layoffs compared to 2024 and 2025, highlighting structural challenges within the industry.
- Amazon's Layoff Plan: Amazon announced a plan to cut 16,000 jobs, representing 1.07% of its 1.5 million workforce, aimed at reducing bureaucracy and enhancing organizational efficiency, demonstrating the company's commitment to operational optimization.
- ASML and Ericsson Layoffs: ASML plans to lay off 1,700 employees, primarily in the Netherlands, to streamline processes and decision-making, while Ericsson intends to reduce its workforce by 1,600 to improve cost structure and maintain critical technology investments, reflecting widespread cost control pressures in the industry.
- Other Company Layoffs: Autodesk announced a reduction of about 1,000 employees, or 7% of its workforce, while Palo Alto Networks laid off approximately 10% of its staff, mainly related to restructuring and redundancy elimination, indicating the urgency for tech companies to consolidate resources.
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Analyst Views on AMZN
Wall Street analysts forecast AMZN stock price to rise
44 Analyst Rating
41 Buy
3 Hold
0 Sell
Strong Buy
Current: 204.860
Low
175.00
Averages
280.01
High
325.00
Current: 204.860
Low
175.00
Averages
280.01
High
325.00
About AMZN
Amazon.com, Inc. provides a range of products and services to customers. The products offered through its stores include merchandise and content it has purchased for resale and products offered by third-party sellers. The Company’s segments include North America, International and Amazon Web Services (AWS). It serves consumers through its online and physical stores and focuses on selection, price, and convenience. Customers access its offerings through its websites, mobile apps, Alexa, devices, streaming, and physically visiting its stores. It also manufactures and sells electronic devices, including Kindle, Fire tablet, Fire TV, Echo, Ring, Blink, and eero, and develops and produces media content. It serves developers and enterprises of all sizes, including start-ups, government agencies, and academic institutions, through AWS, which offers a set of on-demand technology services, including compute, storage, database, analytics, and machine learning, and other services.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Strong AWS Growth: Amazon Web Services (AWS) achieved a remarkable 24% revenue growth in Q4 2025, indicating robust demand for AI products and services, with CEO Andy Jassy highlighting that AWS serves as the primary cloud provider for more U.S. Fortune 500 startups than the next two competitors combined, enhancing the company's market position.
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- Amazon's Layoff Plan: Amazon announced a plan to cut 16,000 jobs, representing 1.07% of its 1.5 million workforce, aimed at reducing bureaucracy and enhancing organizational efficiency, demonstrating the company's commitment to operational optimization.
- ASML and Ericsson Layoffs: ASML plans to lay off 1,700 employees, primarily in the Netherlands, to streamline processes and decision-making, while Ericsson intends to reduce its workforce by 1,600 to improve cost structure and maintain critical technology investments, reflecting widespread cost control pressures in the industry.
- Other Company Layoffs: Autodesk announced a reduction of about 1,000 employees, or 7% of its workforce, while Palo Alto Networks laid off approximately 10% of its staff, mainly related to restructuring and redundancy elimination, indicating the urgency for tech companies to consolidate resources.
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- Strong AWS Growth: Amazon Web Services (AWS) achieved a remarkable 24% revenue growth in Q4 2025, indicating robust demand for AI products and services, with CEO Andy Jassy highlighting that AWS serves as the primary cloud provider for more U.S. Fortune 500 startups than the next two competitors combined, enhancing the company's market position.
- Clear Competitive Advantages: Amazon's wide economic moat and scale advantages allow it to achieve cost efficiencies in logistics and cloud computing, with fast and free shipping services and high fixed investments in AWS contributing to its competitive edge in the market.
- Sustained Growth Potential: Over the past decade, Amazon's revenue and operating income have surged by 570% and 3,536%, respectively; while growth rates may decline in the future, the company is well-positioned to benefit from multiple secular trends such as AI, cloud computing, and online shopping, ensuring continued business momentum.
See More
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- Layoff Acceleration: According to Layoffs.fyi, over 26,000 employees have been laid off in the tech sector in 2026, indicating a significant increase in layoffs compared to 2024 and 2025, highlighting structural challenges within the industry.
- Amazon's Layoff Plan: Amazon announced a plan to cut 16,000 jobs, representing 1.07% of its 1.5 million workforce, aimed at reducing bureaucracy and enhancing organizational efficiency, demonstrating the company's commitment to operational optimization.
- ASML and Ericsson Layoffs: ASML plans to lay off 1,700 employees, primarily in the Netherlands, to streamline processes and decision-making, while Ericsson intends to reduce its workforce by 1,600 to improve cost structure and maintain critical technology investments, reflecting widespread cost control pressures in the industry.
- Other Company Layoffs: Autodesk announced a reduction of about 1,000 employees, or 7% of its workforce, while Palo Alto Networks laid off approximately 10% of its staff, mainly related to restructuring and redundancy elimination, indicating the urgency for tech companies to consolidate resources.
See More
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- MercadoLibre Market Dominance: MercadoLibre's unique buyers in Argentina, Mexico, and Brazil increased by 26% year-over-year to 76 million, indicating strong growth potential in the Latin American e-commerce market, with expectations for further market share expansion.
- Fintech User Growth: The number of fintech users at MercadoLibre grew by 29% year-over-year to over 72 million, demonstrating its leadership in digital financial services, which is expected to enhance profitability through a diversified product portfolio.
- Shopify's AI Shopping Prospects: Shopify's partnership with Google on the Universal Commerce Protocol has led to a 15-fold increase in orders from AI search since January, showcasing AI's positive impact on customer product discovery and enhancing its market competitiveness.
- Long-term E-commerce Outlook: Despite Shopify's stock price falling 38% from recent highs, the global e-commerce market is projected to reach $4 trillion, and with strong growth and innovative customer engagement strategies, Shopify remains a top growth stock to invest in.
See More
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- Market Leadership: MercadoLibre continues to expand its market share across Argentina, Mexico, and Brazil, with unique buyers increasing by 26% year-over-year to 76 million, indicating strong growth potential in Latin America's e-commerce and financial services sectors.
- Significant Revenue Growth: Over the past four years, MercadoLibre's revenue has surged from $6 billion to over $26 billion, reflecting a robust annual growth rate of 31%, showcasing the company's success in expanding its user base and enhancing profitability.
- Financial Services Expansion: The company has introduced credit cards and lending products, resulting in a 29% increase in fintech users to 72 million; despite rising debt, low customer default rates demonstrate management's prudence and effectiveness in business expansion.
- Attractive Investment Timing: With a forward price-to-earnings ratio of 32, MercadoLibre's stock appears appealing relative to Wall Street's projected 32% annual growth rate, and the recent pullback presents a compelling entry point for investors.
See More
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- Amazon's Market Leadership: Amazon (AMZN) leads in both e-commerce and cloud computing, with its North American operating income rising 24% last year, showcasing strong operating leverage driven by its largest global logistics network.
- Cloud Business Growth: Amazon Web Services (AWS) is the company's most profitable and fastest-growing segment, achieving 24% revenue growth last quarter, with capital expenditures ramping up to $200 billion this year to seize market opportunities.
- Valuation Advantage: Amazon's forward P/E ratio is below 27 times, contrasting sharply with peers like Walmart and Costco, which trade above 40 times, indicating its stock's attractiveness for long-term investors.
- Meta's AI-Driven Growth: Meta (META) has leveraged AI to enhance its recommendation engine, accelerating revenue growth to 24%, with projections for Q1 growth between 26% and 34%, while also introducing ads on new platforms like WhatsApp and Threads to expand revenue streams.
See More
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- Competitor Analysis: Starlab boasts the largest funding and international partnerships, including Voyager Technologies, Hilton, Janus Henderson, Leidos, Northrop Grumman, and Palantir, highlighting its competitive edge in the market.
- Independent Team Advantages: Axiom Space has successfully sent astronauts to the ISS for training, with a fifth mission scheduled for next year, while Vast plans to send astronauts for a 14-day training mission in summer 2027, enhancing its market competitiveness.
- Investment Outlook: With the ISS expected to cease operations in 2030, stocks from the Orbital Reef and Starlab teams are becoming focal points for investors, as the market competition remains open and investors need to choose wisely.
See More
