Insights · 10 Jun 2026

AI-driven layoffs backfired at most of the companies that tried them

CNBC tracked 23 S&P 500 companies that cut staff to move faster on AI. 56% saw their stock fall afterward, by an average of 25%.

Nike cut 800 workers to accelerate AI. The stock is down 35%. Salesforce laid off 4,000 and fell 32%. Fiverr cut 30% of its workforce and dropped 54%. A Gartner survey of 350 large-company executives found the same thing underneath the headlines: the companies cutting headcount for AI reasons returned no better than the ones that kept their teams intact.

The companies pulling ahead used AI a different way. Gartner calls it people amplification. The AI takes the low-judgment work. The people keep what needs context, relationships, and accountability. Same headcount, higher output. Sam Altman named the other half of it in February: there is some AI washing where companies blame AI for layoffs they would have done anyway.

So far in 2026, 49,135 workers have been laid off with AI given as the reason, close to the total for all of last year. And the data keeps pointing one way. For a mid-sized business, the highest-return use of AI is taking the low-value work off the team you already have. Intake, follow-up, scheduling, first drafts, data entry, an agent handles those. Judgment calls, client relationships, escalations, your people keep those.

This is how we build

Every agent we ship is pointed at the work your team should not be doing by hand, so the people stay on the work only they can do. If you want to find which of that work is worth automating first, that is what an AI Audit is for.

Sources: CNBC (23 S&P 500 companies tracked), Gartner (survey of 350 executives), 2026.

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