AI Is The Main Driver Behind Layoffs—For The Second Month In A Row
AI Is The Main Driver Behind Layoffs—For The Second Month In A Row
Publish Date: 2026-05-07 05:30:00
Source Domain: www.forbes.com
Topline
Businesses implementing artificial intelligence was blamed for more layoffs than any other reason for the second month in a row in April, new data shows but some experts have said they think technology companies, which use the excuse more than any other sector, are using AI as a smokescreen to hide larger internal struggles.
Open AI CEO Sam Altman on June 02, 2025 in San Francisco, California.
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Key Facts
U.S.-based employers announced 83,387 job cuts in April, up 38% from cuts recorded in March, according to new data from career services firm Challenger, Gray and Christmas.
Of those, 26% (or 21,490) of cuts were blamed on artificial intelligence, making AI the leading reason for job cuts for the second year in a row and the third-leading cause of layoff plans for the year.
And as companies like Coinbase, Meta and Oracle axe thousands of jobs in the name of AI, some tech CEOs and experts have said they think companies are hiding behind the excuse (see a timeline of AI-blamed tech layoffs here).
Jason Droege, CEO of AI infrastructure company Scale AI, last month said CEOs are hiding behind the “excuse” of AI to reduce headcount and make cuts that would otherwise be thought of as ordinary “right-sizing.”
Sam Altman earlier this year accused companies of “AI washing” layoffs and blaming AI for cuts they “would otherwise do” anyway.
A Business Insider interview with Torsten Slok, Apollo chief economist, postured “it’s entirely possible that underperforming companies are throwing AI under the bus… looking to escape accountability.”
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Key Background
Job market experts have long sounded the alarm about AI taking over jobs and shrinking workforce. Billionaire Dario Amodei, founder and CEO of AI giant Anthropic,…
