💼 AI is Not the Main Driver of Mass Layoffs

According to data from layoffs.fyi, AI is cited as a direct cause of layoffs in less than 8% of cases. The primary reason is budget reallocation: companies are shifting funds from payroll to the procurement of AI infrastructure, models, and staff training.

🌍 Companies are facing the necessity of financing the transition to an AI stack, which creates financial pressure on current staff. Increased coding productivity through AI requires not a reduction in team size, but a shift in focus toward planning, architecture, and testing.

👤 The fear of total replacement by AI is exaggerated, but the risk of layoffs due to changing budget priorities is real. To remain in demand, professionals need to develop skills in system design and validation, which are harder to automate.

Source 1: https://olegdubovoi.com/thoughts/2026-06-04-mass-layoffs-caused-by-ai/