AI is transforming corporate operations, with over 108,724 tech layoffs in 2026 linked to increased AI investments. However, a Gartner study reveals that companies reducing workforce for AI have not improved financially.
AI is changing the way companies operate. According to the latest data from Layoffs.fyi, more than 108,724 tech employees have lost their jobs in 2026 across nearly 137 companies. Many layoffs at Big Tech firms have been linked to a shift in investment toward AI. However, a new study suggests that replacing employees with AI may not be delivering the results many companies expected.
According to a recent survey by research and advisory firm Gartner, many large companies that cut jobs to invest in AI have not seen better financial performance.
As reported by Fortune, Gartner surveyed 350 global business executives from companies with annual revenue of at least $1 billion.
and found that 80 percent of executives whose companies tested AI or autonomous tech said they had reduced their workforce.
However, the key finding was that companies that laid off workers performed no better financially than those that retained their employees. In simple terms, many businesses cut jobs to free up money for AI investments but the AI did not produce stronger returns.
“Looking only at layoffs is shortsighted in terms of getting value from AI. Chasing value only through headcount reduction is likely to lead most organizations down a path of limited returns,” Helen Poitevin, Vice President Analyst at Gartner and one of the study’s key researchers, told Fortune.
The study found that the companies seeing the best results were not those replacing workers but those using AI to help employees work more efficiently.
Gartner described this approach as ‘people amplification.’
“That’s not where the value is. That’s not where the productivity gains are going to be,” she said.
