The AI layoffs may have finally ended, and businesses might be hiring more workers just to be able to use AI effectively
- Just 4% of service firms have laid off workers in the past six months due to AI
- "Existing workers are much more likely to be retrained than replaced"
- Some companies are still hiring fewer employees than they would have
Just a few years ago, multiple companies every day were announcing AI-related layoffs amid purported efficiency gains. And that came straight after years of post-pandemic layoffs driven by earlier overhiring.
The latest data finally implies that AI-related layoffs aren't so common anymore as companies get to grips with AI and hire new workers to help them find a direction.
According to recent New York Fed data, only 4% of AI-using service firms reported laying off workers as a result of AI in the past six months, with no manufacturers reporting AI-related layoffs in all of 2025 and 2026.
Are companies finally hiring because of AI?
On the flip side, around 13%...
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