(The Hill) — Businesses are increasingly referencingartificial intelligenceas a rationale for job cuts, according to a new study pointing to increasing worries about artificial intelligence’simpact on the workforce.
Employers based in the United States reported 83,387 job reductions in April, representing a 38 percent rise compared to March, as per areport released Thursdayby Challenger, Gray, and Christmas. Layoffs remained 21 percent lower than in April 2025.
The second consecutive month, AI was cited as the primary cause of job reductions. Employers linked 21,490 planned job losses in April to artificial intelligence and automation initiatives, making up more than a quarter of all cuts, according to the report.
The results emerge as businesses in the technology, finance, and customer service industries increase their funding ingenerative AI toolsfocused on enhancing productivity and reducing workforce expenses.
Technology firms remained at the forefront of job cuts across all sectors this year. According to Challenger data, the industry reported tens of thousands of workforce reductions in the early months of 2026 as companies reorganized and redirected their budgets toward AI projects.
Technology firms keep making big announcements about workforce reductions and are at the forefront of job cut notifications across all sectors. They frequently mention spending on AI and innovation,” said Andy Challenger, a workplace expert and chief revenue officer at Challenger, Gray & Christmas, in a statement. “Whether specific positions are being taken over by AI or not, the funding for those roles is.
Some companies have also mentioned that AI might decrease the need for future hiring, especially forentry-level and white-collar positions.
The report adds to growing anxietydiscussions among employees regarding how artificial intelligence might transform the job market. Recent studies indicate that numerous Americans are concerned about AIcould eliminate jobsor limit job opportunities in specific areas that were previously seen as secure against new technological advancements.
Some workplace experts have also warned that companies might be exaggerating AI’s involvement in job cuts to present larger cost-reduction initiatives as part of the technology boom — a pattern some analysts have referred to as “AI-washing.”
Billionaire entrepreneur Mark Cuban recently arguedEmployees who master the efficient use of AI technologies will gain an edge in the changing economy, although he recognized that the technology is expected to reshape hiring practices in various sectors.
Although there was an increase in jobs in April, total layoffs are still much lower than last year’s rate. Challenger reported that employers announced 300,749 job reductions during the first four months of 2026, a decrease of approximately 50 percent compared to the same period in 2025.
The company stated that economic instability and reorganization also play a role in job cuts.
The increasing movement towards AI hasalso extendedinto the federal environment, which experienced astriking number of layoffssince President Trump came back to power.
The administration of Trump has taken steps to relax certain regulationsBiden-era restrictions on the technology and unveiled an executive orderlate last year to limit state-level rules. The latterdrew intense backlash.
Chief of staff at the White House, Susie Wilessaid earlier this weekthat the administration is focused on making sure the “most effective and secure technology” is utilized to counter threats — including artificial intelligence systems. However, the administration remainsworking to tame fears around the growing technology.
The White House will maintain its leadership in an America First initiative that supports the nation’s outstanding innovators, rather than red tape, in ensuring the secure implementation of advanced technologies while safeguarding the United States,” Wiles stated. “In truth, it’s just common sense!
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