78,557 workers in the tech industry have reportedly been laid off from January 1 to April 2026, with more than 76% of the affected positions located in the U.S. Nikkei Asia reports that 37,638 of these cuts, or 47.9%, have been attributed to the reduced need for human workers because of AI and workflow automation. Despite that, Cognizant Chief AI Officer Babak Hodjat says that it will still take more than a year before we completely see the impact of modern AI technologies on the workforce.
“I don’t know if they are directly related to actual productivity gains,” Hodjat told Nikkei in reference to the job cuts. “Sometimes, you know, AI becomes the scapegoat from a financial perspective, like when a company hired too many, or they want to resize, and it gets blamed on AI.” Despite that, he said that AI-driven layoffs could still happen, but that it would take another six months to a year “before companies start seeing real productivity gains from AI,” and that “it will be painful for all of us as we’re going through it, and simply because it’s a transition.”
