Nearly 80,000 Tech Layoffs Globally in Q1 2026, Over 40% Attributed to AI Implementation & Automation

Nearly 80,000 layoffs occurred in the global tech industry in Q1 2026, with the US accounting for 76.7% of them. According to RationalFX analysis, about 47.9% of job cuts are directly or indirectly related to AI implementation and workflow automation.

Babak Hodjat, Chief AI Officer of IT service giant Cognizant, believes some companies may use AI as an excuse for financial adjustments to cover issues like over-hiring. He predicts the real impact of AI on the labor market will emerge in the next 6 months to 1 year.

New graduates face employment difficulties due to lack of domain knowledge. Hodjat calls on enterprises to take responsibility for training and help new employees learn to apply AI technology to adapt to the new environment.