518-373-4111
Artificial intelligence (AI) is accelerating operational transformation across industries, prompting organizations to restructure teams, redesign processes, and rethink how work gets done. As companies adopt AI to improve efficiency, reduce costs, and remain competitive, many have incorporated AI-related layoffs or restructuring into these transitions.
For employers, these shifts present more than just operational challenges: they demand careful navigation of organizational culture, employee morale, and long‑term workforce planning. The decisions leaders make today, especially regarding transparency, communication, and support, will shape how employees adapt to AI‑enabled change and how the organization maintains trust amid disruption.
Let’s look at the current state of AI-related layoffs and how employers can maintain employee trust amid them.
The Current State of AI-related Layoffs
AI isn’t just reshaping processes; it’s fundamentally altering the job market. In 2025, AI was identified as a significant contributing factor in nearly 55,000 collective layoffs in the United States, according to data from the consulting firm Challenger, Gray & Christmas. October 2025 alone saw the largest reduction in more than 20 years. Tech giants Amazon and Salesforce have been at the forefront of this trend. Amazon cut 15,000 corporate jobs, citing AI-driven efficiencies and organizational streamlining as key drivers. Similarly, Salesforce eliminated 4,000 customer support roles, explaining that AI now handles up to 50% of the company’s workload. This trend has continued into early 2026, with organizations such as Citigroup, Pinterest, and Meta initiating additional reductions while emphasizing that AI and process automation would reshape work in the years ahead. For this year, global consulting firm Korn Ferry expects more than 4 in 10 companies to replace roles with AI. This trend is most pronounced in positions that involve repetitive tasks or data-heavy processes, such as administrative support.
While these moves are often framed as steps toward innovation, experts caution that the promised productivity gains from AI remain uneven. A recent Boston Consulting Group survey found that 60% of firms reported minimal revenue or cost improvements, despite significant investment in AI, raising questions about whether AI is being used as a genuine efficiency tool or as a narrative for cost-cutting.
Related Market Trends
Meanwhile, the AI‑Related Job Impacts Clarity Act was introduced in the U.S. Senate in November 2025, which would require publicly traded companies, certain private employers, and federal agencies to submit quarterly reports detailing AI‑related workforce impacts (e.g., layoffs, hiring changes, reduced hiring, and retraining linked to AI adoption). Currently, the bipartisan bill remains in the early legislative stage and hasn’t advanced to passage in Congress. While this act is unlikely to gain traction, it is symbolic of leaders taking note of this issue, which may drive further discussions.
Lastly, experts caution that AI is only one part of a broader picture. Workforce analysts note that many businesses overhired during the post‑pandemic boom, leading to corrections unrelated to automation. Economic uncertainty, trade pressures, and company‑specific restructuring have also contributed significantly to recent layoffs. Studies show that the proportion of jobs highly susceptible to AI disruption has remained relatively stable since the introduction of generative AI tools in 2022, suggesting that while AI is influencing change, it is not solely responsible for widespread displacement.
Employer Considerations for Maintaining Trust Amid AI-related Layoffs
Worker sentiment around AI is shifting as technology-driven layoffs become prevalent. Employee concerns about job loss due to AI have skyrocketed from 28% in 2024 to 40% in 2026, according to Mercer’s Global Talent Trends 2026 report. The research shows that 62% of employees feel leaders underestimate AI’s emotional and psychological impact.
Given these findings, employers may consider the following tips to help maintain employee trust amid AI-related layoffs:
Lead with humanity
Technology doesn’t fire people, leadership does. Therefore, if processes are automated, employees may not receive announcements from senior leadership well if they feel the message is dishonest or misleading, leading to distrust over time and damaging workplace culture.
Communicate honestly and only
Trust begins with clarity. When employers explain why changes are occurring, how AI fits into long‑term strategy, and what employees can expect moving forward, workers feel more respected and less uncertain. Transparency is essential, particularly when external narratives about AI layoffs can be misleading or oversimplified.
Share the bigger vision
Often, AI-related layoffs reflect an overarching long-term strategy. In many cases, employers may be reducing staff in one area while growing in others. Employers should be transparent about the bigger vision to help employees adapt and feel they are part of the transformation. Innovation constantly changes how people work, but it’s critical to keep everyone in the loop on the end goal.
Provide reskilling, upskilling, and internal mobility opportunities
Equipping employees with training and development opportunities helps them adapt to evolving job requirements and demonstrates organizational commitment to their future. As companies lean more heavily into AI‑driven growth operations and seek specialized talent, offering pathways into emerging roles fosters stability and engagement.
Take accountability
Employers should acknowledge the reality of the situation and respect the impacted employees. It’s also important to avoid jargon and focus on plainly explaining what happened and what comes next for the workforce.
Be compassionate and follow fair layoff practices
For some employers, hiring freezes, furloughs, or voluntary retirement programs can be a first option. If reductions are unavoidable, employers must approach them with empathy. Providing appropriate severance, extended benefits, and even ongoing career support can mitigate harm and preserve the dignity of departing workers. This, in turn, supports morale among remaining employees and reinforces organizational integrity.
Reassure employees about the evolving nature of work
While AI is altering roles and productivity expectations, research suggests a more nuanced discussion is needed about whether mass-automation-driven displacement is occurring. Employers can help ease employee concerns by explaining how AI will augment human work, emphasizing the continued need for creativity, judgment, and relationship‑driven contributions.
Keep the dialogue going
Layoffs aren’t a “one-and-done” conversation. To maintain employee trust after AI-related layoffs, employers can embrace candid communication and provide ongoing updates and support during the transition.
As organizations navigate the intersection of technological advancement and workforce reduction, maintaining employee trust is critical. Workers want clarity, fairness, and pathways for their own development, especially when AI becomes part of the rationale for restructuring.
Summary
For organizations integrating AI, workforce adjustments are becoming an unavoidable part of strategic evolution. However, how these changes are managed can define an employer’s long‑term reputation, culture, and retention. AI adoption will continue to reshape roles and capabilities. Still, organizations that pair innovation with people‑centered leadership will be best positioned to sustain engagement, retain talent, and build a resilient workforce prepared for the future of work.
© 2026 Zywave, Inc. All rights reserved.
“Human” is at the Heart of GTM’s HR Services
If you don’t want to rely on AI but also don’t have the HR staff or resources to maintain a human touch in your HR operations, outsourcing to the experts at GTM may be the solution. Whether it’s proactively monitoring compliance updates, helping you find your next great hire, or guiding you through changing workforce expectations, our consultants become an extension of your team to support your goals, so you are the HR Hero.
GTM empowers the modern workplace with human-centered HR. Fill out the brief form below to learn more.
