February 2026 Tech Layoffs: American Company-by-Company Breakdown
February 2026 Tech Layoffs: American Company-by-Company Breakdown – Block, eBay, Palo Alto Networks, and More Amid AI Wave
In the opening months of 2026, the U.S. tech sector has been hit hard by a wave of layoffs, with over 130 events impacting nearly 49,000 workers year-to-date across the industry. The United States accounts for the vast majority—over 80%—of these cuts, as American companies lead the charge in restructuring for efficiency, cost control, and aggressive integration of artificial intelligence (AI). From fintech in San Francisco to e-commerce giants and cybersecurity powerhouses, firms are slashing headcounts to redirect resources toward AI-driven innovation, often citing massive productivity gains from tools that automate routine tasks and enable smaller, high-performing teams.
This breakdown for www.clickusanews.com focuses on the American perspective: U.S.-based companies, domestic impacts (especially in tech hubs like California, Texas, and New York), WARN Act filings, stock reactions on Wall Street, and CEO statements from American leaders like Jack Dorsey. The AI wave is reshaping the American workforce, with predictions of further acceleration in job displacement even as new AI-related roles emerge.
For detailed stories on individual firms, check our in-depth posts: Block’s AI Overhaul Hits U.S. Teams Hard, eBay’s Bay Area Cuts Post-Depop Deal, and more. Stay ahead on tech layoffs February 2026, company layoffs 2026 list, and AI driven job cuts this week—subscribe to clickusanews.com for daily U.S. tech and business updates.
Summary of February 2026 U.S. Tech Layoffs
Here’s a quick table of the major American-involved announcements, with job cut numbers, reasons (heavy AI emphasis), and key U.S. impacts.
| Company | Jobs Cut | Primary Reasons (AI Focus Heavy) | U.S. Impact Highlights | Stock/CEO Reaction |
|---|---|---|---|---|
| Block (San Francisco-based) | 4,000+ | AI enabling flatter, intelligence-native teams; tools like Goose save 8-10 engineer hours/week | Primarily U.S. HQ and offices; California WARN filings | Shares up 24%+; Dorsey: “Your company is next” |
| eBay (San Jose-based) | ~800 | Strategic realignment post-$1.2B Depop acquisition; efficiency push | Bay Area ~34% (271 roles via WARN in CA); states like TX, OR, UT hit | Revenue strong; third round in 3 years |
| Palo Alto Networks (Santa Clara-based, via CyberArk) | 500-700 | Post-$25B merger overlaps; integration for AI-era cybersecurity | U.S. headquarters functions; spares R&D | Raised revenue forecast; CEO: AI job loss “overstated” |
| xAI (U.S.-centric, Elon Musk-led) | Key exits (co-founders/engineers) | Reorganization and talent churn post-merger efforts | U.S.-based AI teams | Musk confirms; plans aggressive hiring ahead |
| Others (e.g., broader U.S. wave: Pinterest, CrowdStrike, etc.) | Varies (hundreds) | AI productivity replacing roles; performance realignments | Heavy in CA, TX, NY tech hubs | Wall Street mixed; efficiency rewarded |
These cuts reflect a distinctly American story: Silicon Valley and tech corridors bearing the brunt as companies chase AI advantages amid strong earnings.
Block: 4,000+ U.S.-Heavy Cuts in Bold AI Shift
Block, the San Francisco fintech leader (Square, Cash App), stunned the market on February 26 by announcing over 4,000 layoffs—nearly half its 10,000+ global workforce, dropping to under 6,000. CEO Jack Dorsey tied the move directly to AI: recent model advancements allow smaller teams to outperform, with internal AI agent Goose boosting engineer output by over 40%.
American Impact: Almost entirely U.S.-focused, hitting headquarters and domestic operations hard. California WARN notices detail the scale. Dorsey’s shareholder letter and X post emphasized becoming “intelligence-native,” predicting most U.S. companies will follow within a year.
Wall Street cheered: shares surged up to 24% after-hours on strong Q4 results (gross profit +24%). Severance for U.S. employees is robust—20 weeks base pay + tenure bonus, vested equity, 6 months healthcare, $5,000 transition aid.
This marks a pivotal moment for American fintech, where AI is reshaping payments and services. Full U.S. analysis here.
eBay: 800 Jobs Cut, Bay Area Bears Brunt
eBay, headquartered in San Jose, confirmed ~800 layoffs (6% of full-time staff) on February 26, following its $1.2 billion Depop acquisition. The cuts aim to align with “strategic priorities” in secondhand fashion and Gen Z markets.
American Impact: U.S. states heavily affected—California WARN filings show ~271 roles in San Jose and San Francisco (34% of total), with software engineers, developers, and finance hit hardest. Reports from Texas, Oregon, Utah, and other states indicate widespread domestic pain. This is eBay’s third U.S.-heavy round (1,000 in 2024, 500 in 2023).
Despite cuts, Q4 revenue rose 15% to $3 billion. Some roles reportedly shifting overseas, but U.S. teams feel the immediate sting.
Read our Bay Area-focused breakdown here.
Palo Alto Networks & CyberArk: 500+ Cuts Post-Merger
Palo Alto Networks (Santa Clara, CA) completed its $25 billion acquisition of CyberArk on February 11, then cut 500-700 roles (~10-13% of CyberArk’s 4,000 staff) the next day, targeting overlapping support and HQ functions while sparing R&D.
American Impact: U.S.-centric integration, with headquarters roles eliminated. Palo Alto raised 2026 revenue guidance but trimmed profit outlook due to deal costs. CEO Nikesh Arora downplayed broad AI job fears, arguing the U.S. needs “three to five times more technical talent.”
This reflects American cybersecurity consolidation in the AI threat landscape. Details here.
xAI: High-Profile Exits Signal U.S. AI Talent Shifts
xAI saw significant turnover, including co-founder Toby Pohlen and others departing amid reorganization.
American Impact: U.S.-based (Musk-led), affecting domestic AI engineers. While not mass layoffs, the exits highlight churn in America’s cutting-edge AI sector, though Musk vows aggressive future hiring.
More on U.S. AI frontier changes here.
The Broader American AI Wave
U.S. companies dominate the layoffs narrative, with AI cited in productivity-driven cuts at firms like Pinterest and others. Economists warn of rising unemployment from faster AI adoption, while CEOs like Dorsey forecast structural shifts across Corporate America.
Advice for American Job Seekers in This Market
Affected by tech layoffs February 2026? Act now:
- Upskill in AI—free courses on Coursera (prompt engineering, AI tools).
- Network on LinkedIn/Blind for U.S. sponsorships and openings.
- Update resumes with AI-related achievements; target growing areas like AI implementation.
- Build 6-12 months savings buffer.
- Use severance wisely; explore freelance on Upwork.
For the latest company layoffs 2026 list, AI driven job cuts this week, and U.S.-focused career tips, subscribe to clickusanews.com today. Stay informed—America’s tech future is unfolding fast!
