Companies name AI as top reason for job cuts for second straight month: Analysis

Companies are increasingly citing artificial intelligence as justification for layoffs, according to a new analysis highlighting growing concerns about AI’s impact on the workforce.

U.S.-based employers announced 83,387 job cuts in April, a 38 percent increase from March, according to a report released Thursday by Challenger, Gray & Christmas. Layoffs were still down 21 percent from April 2025.

For the second straight month, AI was listed as the leading reason for the job cuts. Employers attributed 21,490 planned layoffs in April to artificial intelligence and automation efforts, accounting for more than a quarter of all cuts, the report notes.

The findings come as companies across the technology, finance and customer service sectors ramp up investments in generative AI tools aimed at improving efficiency and lowering labor costs.

Technology companies continued to lead all industries in layoffs this year. Challenger data showed the sector announced tens of thousands of cuts during the first few months of 2026 as firms restructured and shifted spending toward AI initiatives.

“Technology companies continue to announce large-scale cuts and are leading all industries in layoff........

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