U.S. Employers Blamed AI for 21,490 Job Cuts in April

Challenger, Gray and Christmas reported that artificial intelligence accounted for 26 percent of announced layoffs last month. Technology companies cited the technology more often than any other sector.

May 25, 5:00 AM(50 days ago)·1m read1 source

U.S. Employers Blamed AI for 21,490 Job Cuts in April

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-based employers announced 83,387 job cuts in April, a 38 percent increase from March, according to data released by career services firm Challenger, Gray and Christmas. Of those cuts, 21,490, or 26 percent, were attributed to artificial intelligence implementation, making AI the leading stated reason for the second consecutive month.

Technology companies announced 33,361 job cuts in April and 85,411 year-to-date, a 33 percent increase from the same period last year. Market and economic conditions remained the top reason for layoffs across all sectors this year, followed by closings, AI, and restructuring.

Jason Droege said last month that some executives use AI as an excuse for routine staff reductions. OpenAI CEO Sam Altman stated earlier this year that companies are engaging in “AI washing” by attributing cuts they would have made anyway to the technology.

Apollo chief economist Torsten Slok said it is possible that underperforming firms are using AI to avoid accountability for performance issues.

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