AI is the top cause of layoffs in 2026, cited in over 120,000 job cuts

According to Challenger, Gray & Christmas, AI was the leading cause of job cuts in 2026, cited in more than 120,000 dismissals in the first nine months — about 21% of all layoffs. A ResumeBuilder survey found 54% of business leaders are cutting employee compensation to fund AI spending.

• AI cited in over 120,000 layoffs in the first nine months of 2026 — 21% of all cuts
• 54% of leaders are reducing employee compensation to fund AI investments
• 27% of C-suite executives cut headcount for AI; only 18% invest in upskilling
• Wages rose 3% while inflation hit 3.4%, leaving workers with a net loss