AI was behind 26% of job cuts in April; the tech industry fired most workers

The tech industry is laying off the most employees across industries, often blaming AI.

US-based employers announced 83,387 job cuts in April, 38% up from layoffs recorded in March, according to a new report from outplacement firm Challenger, Gray & Christmas.

The technology sector is leading the workforce reduction with 33,361 job cuts in April and a total of 85,411 this year. The number marks a 33% increase from the 64,118 layoffs announced in the same period in 2025.

Entities in federal, state, and local governments, as well as warehousing and services sectors, are among the most affected by job cuts.

The report highlights that job cuts due to AI accounted for 26% of layoffs in April. However, it is unclear whether the wide adoption of the technology is the sole reason for them.

Andy Challenger, workplace expert and chief revenue officer for Challenger, Gray & Christmas, says that layoff announcements by technology companies often cite AI spend and innovation.

“Regardless of whether individual jobs are being replaced by AI, the money for those roles is,” Challenger says in a press release.

Some experts, however, say that automation may be just an excuse to mask business failures, such as overhiring, or an attempt to boost stock prices.

After sneaker manufacturer Allbirds announced plans to pivot from footwear to AI compute infrastructure, the company’s shares surged by about 600%, according to CBS News.

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Whether employees are actually being replaced by AI or not, one in three US workers thinks AI will lead to fewer job opportunities for them, according to a 2025 survey.

Chinese courts recently made landmark rulings, making it illegal to terminate employees to replace them with AI.

In the US, protections are weaker, although some unions are successfully fighting against AI displacing employees.

For instance, the Culinary Union of Las Vegas negotiated a collective bargaining agreement requiring increased severance pay and other benefits when work is eliminated due to technological advancements.

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