AI Cited In Roughly 40 Percent Of U.S. Layoffs As Even Profitable Firms Cut Headcount

AI was cited as a factor in 38,579 U.S. job cuts in the most recent tracked month, roughly 40 percent of all layoffs, the highest monthly share since tracking began in 2023. Of 13 major companies tracked citing AI in layoffs, 12 were profitable or growing at the time, and 8 saw their stock price rise after the announcement.

Reported by: Founder Reports AI Layoffs Tracker

Norm's Take

The market is now rewarding AI-driven headcount reduction independent of underlying financial distress, which changes the incentive calculus for every CEO under margin pressure. Leaders should expect ‘AI efficiency’ to become a default explanation for restructuring, whether or not AI is the actual driver, and should be prepared to defend the real reasoning internally.

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Analysis and opinion, not investment or legal advice. © 2026 Norm Murray. All Rights Reserved.

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Norm Murray, CEO and Founder of Norm E. Murray
About the author
Norm Murray
AI Leadership Advisor · Psychologist · Economist
Norm advises CEOs, boards and senior leaders on the psychology and economics of AI adoption: what AI does to leaders and organizations, not just what it does. He has led global businesses across multiple continents and writes The Norm Report for executives navigating the AI shift.
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Norm’s Edge is analysis and opinion intended for senior executive and board-level audiences. It does not constitute legal, financial, investment, compliance or regulatory advice. Stories are drawn from third-party reporting that may be unconfirmed. Readers should seek independent professional counsel before making decisions based on any content published here. Norm E. Murray does not accept any liability for actions taken in reliance on this analysis.

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