AI layoffs have added AUD$549bn to global stock markets, says Adaca research

Sydney, 17 April 2026 – Adaca, one of Australia's top technology services companies, has published analysis of AI-related layoffs announced by publicly listed companies. Its new online tracker JobLossImpact.ai reveals that company stock prices have risen by +1.13% on average in the 24hrs following a major layoff announcement. This represents a +AUD$195bn change in market cap after 24hrs, and +AUD$549bn after one week across global markets. However, Adaca warns that investors don't always view AI layoffs positively, and there are many notable examples of stock drops.

"The data shows that AI layoffs can move stock markets, but it's a high-risk and often short-sighted strategy," said Adaca founder, Lambros Photios. "Markets have responded positively to large, decisive job cuts. Yet for every winner like Block, there is a loser like Atlassian. Investors are not fooled by cynical AI layoffs and attempts to manipulate their market cap. They can usually tell when a company has a genuine AI push, and when they are using AI as a scapegoat to correct previous mismanagement or hide a lack of innovation."

Adaca's analysis shows that the size of layoffs has a major bearing on stock market impact. The ten largest lay-off events, where between 4k and 30k employees were fired, saw an average stock price change of +4.46% after 24hrs. The ten smallest lay-off events, where less than 1,000 employees were fired, saw an average stock price change of -2.5%. This suggests that investors initially respond well to the most radical cuts. For example, Block fired 4k employees (40% of its workforce) and saw its stock rise by 18% after one day. Atlassian fired 1600 employees (10% of its workforce) and this failed to appease investors, losing them $159m in 24hrs. Pinterest saw the biggest 24hr stock decrease of all the companies analysed by Adaca – a 12.9% fall worth $2.5bn, after firing 700 employees.

Adaca warns that the positive stock impacts of layoffs can be short-lived. 1-month post-announcement, the average stock price has decreased by -4.6%. Adaca founder, Lambros Photios, also says there are better days ahead for developers that have lost their jobs.

"This may sound counter-intuitive, but I'm extremely bullish about the future of software development, despite so many devs losing their job," said Photios. "When the cost of production goes down, demand typically goes up. Tech firms are streamlining their big dev teams now, but the jobs market is going to explode. Soon every mid-sized business will have a dev team, just like they have a finance team. This is because tools like Claude Code make it possible for a solo dev to do some incredible things, and build custom tools that will save businesses huge sums of money in SaaS subscriptions."

About Adaca

Adaca is one of Australia's top technology services companies. It works with financial services firms to solve the technology problems holding them back: legacy platforms consuming budgets, security threats introducing regulatory risk, and AI investments stuck in pilot. Trusted by ANZ, IAG, Bupa, and the United Nations, Adaca operates from Sydney, Auckland, and Manila. Visit adaca.com.