Layoffs Remain Elevated, but AI Is Rarely Named as the Cause
U.S. workers’ reports of employer workforce reductions remained unchanged in the first quarter of 2026, with 21% saying their company was cutting staff, according to Gallup. While layoffs have risen sharply since 2022, more employees still reported that their organizations were hiring (34%) than reducing headcount.
Nearly half of workers (45%) said their employer’s workforce size had not changed, reflecting a labor market that has become more stable after the hiring surges of 2022 and 2023. Federal workers reported the highest levels of workforce reductions, with 38% saying their agency was letting people go, compared with 17% of private-sector workers.
Tech Workers and Remote Employees Face Higher Layoff Exposure
Technology workers and fully remote employees made up a disproportionate share of workers who were unemployed due to layoffs.
Among laid-off workers, 13% previously worked in technology, despite tech employees making up only 6% of the employed workforce. Additionally, 25% of laid-off workers had fully remote jobs, compared with 13% of currently employed workers.
However, most occupations mirrored the broader workforce, suggesting elevated layoff exposure was concentrated in certain groups rather than widespread across all desk-based roles.
AI Is Linked to Resilience More Than Job Loss
Despite widespread concern that AI is eliminating jobs, only 1% of laid-off workers identified AI or automation as the primary reason for losing their position.
The stronger pattern involved AI adoption. Workers who rarely or never used AI tools were more likely to have been laid off than employees who used AI regularly. The difference was especially pronounced in the technology sector, where workers who used AI less than once a month were three times more likely to be laid off than tech employees who used AI at least monthly.
The findings suggest that AI adoption may increasingly reflect workforce preparedness rather than direct displacement. While AI could still influence layoffs through restructuring and cost-cutting decisions, Gallup’s data indicate that workers who actively use AI tools appear to be better positioned as organizations continue integrating the technology.
