Sydney now ranks third globally for tech layoffs, behind only Seattle and San Francisco. RationalFX data shows WiseTech, Atlassian, Telstra and Envato have all made significant cuts this year
What’s happening: New data compiled by RationalFX, drawing on sources including TrueUp, TechCrunch, Layoffs.fyi and US WARN databases, shows that Australian tech companies have eliminated 4,450 roles in the first ten weeks of 2026, more than five times the total recorded across all of 2025.
Australia’s technology sector has entered 2026 at a pace of job cuts that has no recent precedent, with new data showing the country has already eliminated more tech roles in ten weeks than it did across the entire previous year.
According to data compiled by RationalFX, a financial services research firm that drew on sources including TrueUp, TechCrunch, Layoffs.fyi and US WARN databases, Australian tech companies have cut a total of 4,450 roles since the start of 2026, RationalFX reported. That compares to approximately 874 positions cut across all of 2025, according to the same data, making the current pace more than five times faster than the year prior. Artificial intelligence has been cited as the primary driver behind all of the Australian cuts recorded so far, according to RationalFX.
A pace that has no precedent
The scale of Australia’s position in the global picture is striking. Of the 48,163 global tech layoffs recorded by RationalFX as of 13 March 2026, Australia accounts for the second highest country total worldwide, behind only the United States, which RationalFX reported has seen 30,846 cuts across 43 companies.
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The largest single round in Australia came from Sydney-based logistics software developer WiseTech Global, which announced in late February it would reduce its workforce by 30 per cent, affecting approximately 2,000 employees, as part of a push toward AI and automation, according to RationalFX. Atlassian, also headquartered in Sydney, followed with 1,600 cuts announced in March, as reported by Reuters. Melbourne-based Telstra and Envato also carried out significant workforce reductions, according to RationalFX. All four companies cited AI implementation, automation and operational restructuring as key drivers, RationalFX reported.
Alan Cohen, analyst at RationalFX, said the pattern reflects something more fundamental than a cyclical correction. “What we’re seeing is not simply a cyclical slowdown, but a sector in transition, where firms are reorganising teams and resources in response to rapidly changing market and technology landscapes,” Cohen said.
The geographic concentration of Australia’s cuts is significant for anyone operating in the country’s technology ecosystem. According to RationalFX data, Sydney has recorded 3,600 roles cut so far in 2026, placing it third globally among cities most affected by tech layoffs, behind Seattle with 16,590 and San Francisco with 9,395.
For a city that has positioned itself as a regional technology hub, the speed of that movement up the global layoff rankings is a notable shift. The bulk of Sydney’s cuts are attributable to WiseTech Global and Atlassian, according to RationalFX, two of the country’s most prominent homegrown technology companies, both of which framed their reductions explicitly as part of a transition toward AI-first operations.
Record revenues, fewer people
One of the more striking patterns in the RationalFX data is the disconnect between layoff activity and financial performance. Several of the companies making the largest cuts are simultaneously reporting record revenues and expanding investment in AI infrastructure, according to RationalFX.
Amazon, which tops the global layoff list with 16,000 cuts in 2026 following nearly 20,000 in 2025 according to RationalFX, reported revenue of $716.9 billion last year and is projecting $200 billion in capital expenditure for 2026 alone, according to RationalFX. Dutch semiconductor equipment maker ASML announced 1,700 job reductions while reporting record sales and profits in 2025, according to RationalFX. Block trimmed 4,000 roles while expanding in fintech and internal automation tools, RationalFX reported.
The pattern suggests that for many large technology companies, reducing headcount and investing in AI are not contradictory strategies. They are the same strategy, with the former funding the latter.
What this means for Australian business
For small business owners, the data raises questions that go beyond the technology sector itself. The roles being eliminated are no longer limited to operational and support functions, according to RationalFX’s analysis. More recent cuts are affecting specialised and senior positions as organisations reorganise around AI-first strategies, RationalFX reported.
RationalFX estimates that if the current pace of global tech layoffs continues, total reductions could reach 264,730 by year end, surpassing 2025’s total of 245,000, according to the firm’s projections.
For businesses hiring in technology or managing teams with technology-adjacent functions, the shift in what skills large companies are valuing and what roles they are eliminating is a direct signal about where the broader labour market is heading. The question for small business owners is not whether AI will affect their workforce. The RationalFX data suggests the shift is already well underway. The more useful question is how quickly to build the internal capability to stay ahead of it.
All figures and rankings in this article are sourced from RationalFX, which compiled layoff data from TrueUp, TechCrunch, Layoffs.fyi and US WARN databases.
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