Companies Ramp Up Layoffs for AI, Here’s the Latest Data

Jakarta, VIVA – Artificial intelligence (AI) is increasingly associated with waves of layoffs (PHK) at various global companies. This technology is even cited as the main reason for workforce efficiency measures in the past two months.

The latest report from the employment placement firm Challenger, Gray & Christmas indicates that AI was the biggest cause of layoffs in April 2026.

Ironically, this trend emerges amid massive investments by technology companies in AI development and business automation. According to the report, 21,490 layoffs in April were related to AI.

This figure equates to 26 per cent of the total 88,387 layoffs announced by companies during that month. “Regardless of whether individual jobs are truly replaced by AI or not, the funds for those positions are indeed being redirected,” said labour expert and Chief Revenue Officer of Challenger, Gray & Christmas, Andy Challenger, as quoted from CBS News on Tuesday, 12 May 2026.

Overall, the number of layoffs in April rose 38 per cent compared to March 2026. The technology sector was the largest contributor with a total of 33,361 layoffs.

Several companies are reportedly beginning to cut workforce costs to redirect budgets towards AI development. This situation occurs as companies become more aggressive in adopting automation technology to enhance business efficiency.

Nevertheless, several economists assess that AI is not necessarily the only cause of this wave of layoffs. Some companies are believed to be using AI as a pretext for efficiency measures amid global economic pressures.

Besides AI, Challenger also noted that economic conditions and the market were the biggest factors causing layoffs throughout 2026. That factor has triggered 53,058 workforce reductions this year.

The Iran war and US President Donald Trump’s tariff policies are also said to have worsened business conditions and prompted companies to reduce staff.

On the other hand, US labour market data is beginning to show the impact of AI on office jobs. President of Yardeni Research, Ed Yardeni, stated that layoffs in the professional services and business sector increased by 150,000 compared to last year. That sector is considered most vulnerable to AI automation.

However, several economists believe that AI will ultimately create new types of jobs. This technology is expected to generate demand for professions that previously did not exist, similar to previous technological revolutions.