In recent years, companies have often announced spending cuts to improve efficiency as they introduce artificial intelligence into their workflows. The wave of unpopular measures follows mass layoffs during the pandemic due to previous overhiring. Perhaps these measures are no longer effective.
Image source: newyorkfed.org
In the past six months, only 4% of companies using artificial intelligence to provide services reported layoffs due to the introduction of these technologies, calculated at the Federal Reserve Bank of New York. However, for all of 2025 and part of 2026, no manufacturing organization reported AI-related layoffs. In comparison, about 13% of service companies said artificial intelligence has prompted them to hire more workers. These additional personnel are often needed to help implement and maintain AI.
Artificial intelligence is not as actively replacing workers as previously thought. More than one-third of businesses using artificial intelligence in services retain employees; more than one-fifth of manufacturing companies do the same. They are training workers on how to use artificial intelligence to increase productivity as their jobs transform. “Today’s workers are more likely to be retrained than replaced by artificial intelligence.”the report said.
Although there are some positive aspects, there are also negative aspects. As a result, 15% of service companies admit that they are starting to reduce their headcount due to artificial intelligence – a figure that was up from 12% a year ago. No one can guarantee that mass layoffs will end once and for all, but objective data suggests that in practice it is more common to reallocate personnel than to lay off employees—and in addition to layoffs, recruitment and retraining play an important role in the personnel process.
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