Oracle to Snap: 4 billion-dollar giants cut thousands of jobs for AI push in first 4 months of 2026

The first four months of 2026 have signalled a brutal shift in the global employment landscape, as four billion-dollar giants announced massive workforce reductions. Unlike traditional layoffs driven by financial loss, this latest wave is largely defined by a strategic pivot toward artificial intelligence. Giant tech companies are slashing thousands of roles to reallocate billions of dollars toward AI infrastructure.

These layoffs highlight a growing disconnect between soaring stock prices and employee stability, leaving thousands of highly skilled professionals back on the job market in an increasingly competitive and automated environment.

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Oracle employees received the layoff news in an email from the company. “We are sharing some difficult news regarding your position. After careful consideration of Oracle’s current business needs, we have made the decision to eliminate your role as part of a broader organizational change. As a result, today is your last working day. We are grateful for your dedication, hard work, and the impact you have made during your time with us. After signing your termination paperwork, you will be eligible to receive a severance package subject to the terms and conditions of the severance plan. You will receive an email from DocuSign to your Oracle email address with details on your severance and termination date,” read a part of the email.

“While these changes are necessary to realize Snap’s long-term potential, we believe that rapid advancements in artificial intelligence enable our teams to reduce repetitive work, increase velocity, and better support our community, partners, and advertisers,” Snap’s co-founder and CEO, Evan Spiegel, wrote in the memo, reported the Business Insider. He further added that the company would shut more than 300 open roles.

“Snap faces a crucible moment — squeezed between giants with enormous resources and nimble startups moving fast,” the company said.

“Today we are announcing changes that will impact approximately 1,000 team members at Snap, including 16% of our full time employees, in addition to closing more than 300 open roles. This is an incredibly difficult decision, and I am deeply sorry to the colleagues who will be leaving us. You have made important contributions to Snap, and we are committed to supporting you through this transition,” reads a part of Spiegel’s memo.

“Today we’re making one of the hardest decisions in the history of our company: we’re reducing our organization by nearly half, from over 10,000 people to just under 6,000. That means over 4,000 of you are being asked to leave or entering into consultation. I’ll be straight about what’s happening, why, and what it means for everyone,” the Twitter (now X) co-founder wrote.

Talking about the severance package for the affected employees, he explained, “First off, if you’re one of the people affected, you’ll receive your salary for 20 weeks + 1 week per year of tenure, equity vested through the end of may, 6 months of health care, your corporate devices, and $5,000 to put toward whatever you need to help you in this transition (if you’re outside the U.S. you’ll receive similar support but exact details are going to vary based on local requirements). I want you to know that before anything else. Everyone will be notified today, whether you’re being asked to leave, entering consultation, or asked to stay.”

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Gale said in a memo, “Over the last few weeks we have been working on some changes to our organization that will result in us laying off around 10% of the company on May 20, and closing about 6,000 open roles. Normally, we would want to nail down more details before communicating about this broadly, but since this has leaked, I want to share what I can right now. I know this is unwelcome news and confirming this puts everyone in an uneasy state, but we feel this is the best path forward, given the circumstances.”

“We will support those who are laid off with a generous severance package which, in the US, will include 16 weeks base pay plus two weeks for every year of employment. We will also cover the cost of COBRA health care coverage for US employees and their families for 18 months. Packages outside the US will be similar but vary by country, as will local timelines and processes. We will also offer career services to support people in finding another role, and immigration support for those who need it. We’ll share more of these details in a follow up post ahead of May 20,” the memo continued.

The affected employees would receive their termination email through both their work and personal email accounts.