Big pile of bundles of 100 US dollar notes.
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The idea that AI is about to take away millions of human jobs in America has been around for a while now, since perhaps the era of GPT 3 or so, when it started to become clear to business leaders and everyone else that most human jobs can be, to some extent, automated.
As economists know, the entire job doesn’t need to be automated in order to spur huge layoffs at companies. The workloads which can’t be automated can be consolidated to a greatly shrunken full-time staff, leaving the vast majority with pink slips.
Last month, a report by outplacement firm Challenger, Gray and Christmas showed that the top reason for layoffs was automation, as cited by those making the decisions. Now, as of yesterday, we know that the same is true for the past month of April. The May 7 report showed clearly that U.S. employers shedded 83,387 jobs in April, up 38% from March numbers.
“Technology companies continue to announce large-scale cuts and are leading all industries in layoff announcements,” explains Challenger, Gray and Christmas workplace expert and chief revenue officer Andy Challenger. “They are also often citing AI spend and innovation. Regardless of whether individual jobs are being replaced by AI, the money for those roles is.”
That’s a good distinction: it may not be apples to apples in terms of job displacement, but the money speaks for itself.
Big Moves in Tech
Recently, I wrote about the enormous tranches of layoffs at Meta, where Mark Zuckerberg has announced an ambitious plan to automate many operations. Analysts cite a combined 2400 layoffs so far in 2026, with a stated plan to cut Meta’s entire workforce by 20%.
According to recent reporting, a big wave of permanent redundancies is coming within weeks.
“The job slash, which is set to begin by May 20, is quickly followed by the closure of 6,000 job slots at the company, a move that signals the seriousness of AI optimization,” writes Joseph Ofonagoro for TechRepublic.
Don Lair at 24/7 Wall Street goes much further, writing:
“The reallocation story is the story. April 2026 alone saw 83,387 announced job cuts, up 38% from March’s 60,620, with AI cited as the primary reason for 21,490 of those cuts. Year to date, the tech sector has shed 85,411 jobs, up 33% from the same point in 2025, the worst pace since 2023. The same companies running those reductions are the ones writing the biggest infrastructure checks in corporate history.”
According to Lair and others, the direct replacement is clear, and the volume is unprecedented. Lair provides this tally:
“Amazon has cut roughly 30,000 roles in the last five months. Microsoft has shed about 125,000 through ‘voluntary’ departures. Alphabet is in the middle of an ongoing 1,500.”
To most people, that doesn’t look like a blip.
Our Imagination in Action Conference
As we met in April, at MIT, for the annual IIA conference here, a summit which I help to run, there was a lot of talk about AI’s impact on jobs. I can’t count with both hands the number of times that the issue came up on panels. I also interviewed over a dozen people about this, and almost invariably, although they provided qualifiers and came up with a wide spectrum of future projections, there was generally the realization that things are going to be tough for current grads seeking the kinds of entry-level jobs where you learn and advance.
My colleague Paul Baier from GAI Insights had this to say about the upcoming commencement:
“We’re sitting here in April. Next May, 30 days from now, tens of thousands of college graduates will be walking out there. Many parents and grandparents here are really concerned about them.”
Here’s what Aleksandra Przegalinkstra of Kozminski University said in a panel about AI and the Future:
“There’s probably that threshold of proximity that you should not pass, for these ideas to still be original, and for you to claim your agency and to think that they’re really your own – I find that to be a problem that we really will have to solve, because working together with AI can be incredible for me as a researcher, but I don’t know exactly what is the right proximity yet. I’m trying to intuitively figure out. We’re trying to gather data about it, but we really don’t know.”
Mark Machin of Intrepid Growth Partners, in a panel on capital, spoke to the transience of modern business:
“I think the key question for everybody, at the top of the food chain, or wherever is the defensibility of all the businesses everybody’s building,” Machin said. “And, you know, what is truly going to be sustained defensibility. So you actually have long-term value. So you actually have a 5, 10 year, 15 year future, rather than three years, and then flame out, or less.”
There are so many more. My point is that burying our heads in the sand will not mean avoiding this real sea change, right now. Stay tuned.
