Tech Industry Lays Off 78,557 in Q1 2026, Nearly 50% Attributed to AI
78,557 tech workers laid off in Q1 2026, with 47.9% attributed to AI and workflow automation. Experts warn of 'AI washing' where companies blame AI for layoffs driven by poor business decisions.
According to Nikkei Asia, 78,557 tech workers were laid off in Q1 2026 (January-March). Of those, 37,638 (47.9%) were attributed to AI and workflow automation, with over 76% of affected positions located in the United States.
However, these figures are contested. Cognizant Chief AI Officer Babak Hodjat stated it will take another six months to a year before companies see real productivity gains from AI, suggesting some layoffs use AI as a 'scapegoat for poor business performance.' OpenAI CEO Sam Altman also acknowledged 'AI washing,' where companies blame AI for layoffs they would have made regardless.
Nevertheless, AI's impact on employment is real and accelerating, particularly for entry-level positions. Hodjat warned that 'there's going to be a ton of people coming out of school that can't find a job,' emphasizing the need for companies to provide on-the-job AI training opportunities.
Sources
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