Last month, while working on a client's project, I learned that a former teammate I knew from the industry had been laid off. This situation was different from the "team downsizing" or "cost optimization" explanations we've become accustomed to in the past few years; the company laid off hundreds of people simultaneously and opened far fewer new positions requiring different skill sets. This is a concrete example of a new layoff pattern we're increasingly seeing in the tech sector in 2026, called "Cut and Pivot." This strategy emerges as companies strive to rapidly transform their existing talent pools to meet future needs, requiring all of us to re-evaluate our career plans.
What is 'Cut and Pivot' and How is it Different from Previous Waves?
The 'Cut and Pivot' strategy means companies are undertaking a radical talent transformation, focusing on future growth areas rather than current operational efficiency. Previous layoff waves were generally driven by general cost-cutting motivations, such as economic fluctuations or over-hiring. For example, the rapid growth fueled by the post-pandemic expectation of "everyone will work from home" later reverted to "downsizing" as the market normalized. This typically involved horizontal cuts across departments to reduce overhead and protect profit margins.
