Companies blame AI for deep job cuts for second month in a row

U.S. employers announced 83,387 layoffs in April, a 38% rise from March, with artificial intelligence (AI) cited as the leading cause for the second consecutive month, according to Challenger, Gray & Christmas. AI accounted for 26% of the cuts, totaling 49,135 job losses attributed to the technology so far in 2026, ranking it as the third-largest driver of planned layoffs overall. The technology sector was hardest hit, with 33,361 job cuts in April, bringing the year-to-date total to 85,411—a 33% increase compared to the same period in 2025. Major firms like Meta, Google, and Amazon are pouring billions into AI development, including large-scale data centers, while Meta alone announced a 10% workforce reduction in April, citing increased AI expenditures. Meta CEO Mark Zuckerberg previously predicted 2026 would mark a dramatic shift in work due to AI. Other industries also reported significant layoffs, including government (9,149 cuts), warehousing (5,743 cuts), and pharmaceuticals (7,440 cuts—a 500% rise from 2025). Meanwhile, hiring plans dropped 69% from March to around 10,000 positions, down 38% from April 2025, when 16,191 hires were planned. Challenger, Gray & Christmas attributed muted hiring to economic uncertainty, including potential disruptions from the Iran war. Despite the layoffs, the U.S. added 115,000 jobs in April, surpassing expectations of 65,000 but slowing from March’s 185,000 gains. The unemployment rate remained steady at 4.3%. Healthcare led job growth with 360,000 additions over the past year, driven by an aging population, while other sectors collectively cut 120,000 roles. Employee anxiety over AI is rising, with 18% of U.S. workers believing their jobs could be eliminated within five years due to automation.