The software and tech industry in the United States continues to experience major workforce reductions in late February 2026, largely fueled by the accelerated adoption of artificial intelligence (AI) tools. These advancements allow companies to automate coding, data processing, customer operations, and more—enabling leaner teams to deliver higher productivity. This week’s news has been dominated by blockbuster announcements from major U.S.-based firms, signaling a broader shift in the American tech job market.

Major Layoff Spotlight: Block Cuts Nearly Half Its U.S.-Heavy Workforce

In a stunning announcement on February 26, 2026, Block (formerly Square, parent to Cash App, Afterpay, and Tidal) revealed plans to slash over 4,000 jobs—approximately 40% of its global workforce of more than 10,000 employees. This will reduce the company to under 6,000 staff members by the end of Q2 2026.

CEO Jack Dorsey directly linked the cuts to the transformative power of “intelligence tools” (AI), explaining in his shareholder letter and public statements that AI has redefined company operations. Smaller, highly skilled teams can now achieve far more using these tools. Dorsey emphasized that Block opted for a single, deep cut (rather than prolonged reductions) to preserve team morale and customer confidence amid strong financial results. Following the news, Block’s stock surged more than 24% in extended trading, reflecting investor approval of the efficiency move.

Dorsey warned that this is just the beginning: Many other U.S. companies are expected to follow with similar structural changes within the next year as AI productivity gains compound.

Other Key U.S. Tech and Software Layoffs This Week/Recent Period

• eBay (U.S.-based e-commerce giant) announced cuts of about 800 roles (roughly 6% of its workforce) on February 26, 2026, as part of efficiency initiatives following a major acquisition.
• Broader 2026 trends show ongoing pressure in U.S. tech: Cumulative tech layoffs have already impacted nearly 50,000 roles across 130+ companies year-to-date (averaging hundreds per day), per industry trackers.
• Other notable U.S. firms citing AI or efficiency in recent months include Pinterest (15% workforce reduction focused on AI reallocation), Salesforce (cuts in marketing, product, and AI units), and various enterprise software players amid AI integration.

Why AI Is Fueling U.S. Software Layoffs in 2026

The wave reflects a pivotal industry transition in America:

• AI automates routine software tasks like code generation, testing, analytics, and support—reducing the need for large teams.
• Companies are shifting budgets from personnel to AI infrastructure, cloud computing, and innovation.
• U.S. tech leaders highlight this as a “seminal moment,” with concerns rising about white-collar job displacement, though opportunities grow for those skilled in AI, machine learning, and related fields.

For American software engineers, developers, fintech specialists, and SaaS professionals, adapting to AI tools (e.g., prompt engineering, AI-assisted development) is increasingly critical for career resilience in this evolving market.

Stay informed on U.S. tech job trends, career advice, and industry shifts. For the latest updates and resources tailored to American professionals, visit www.clickusanews.com.