AI Cited in Over 21,000 US Job Cuts in April as Indian Tech Sector Restructures

US job cuts surged 38% in April, with artificial intelligence cited as the primary reason for over 21,000 layoffs, according to the Challenger, Gray & Christmas report. Globally, more than 93,000 tech jobs have been eliminated in the first months of the year, as companies pivot to AI-centric business models.

In India, Oracle laid off approximately 12,000 employees in April 2026 as part of its AI transition, while Tata Consultancy Services reduced its workforce by over 12,000 in FY26. Firms including Cognizant, Freshworks, and SuperOps are adopting an 'AI Native' model, relying on smaller, more skilled teams to manage automated workflows.

Industry experts warn of 'AI washing,' where companies use AI as a justification for downsizing following over-hiring, rather than genuine technological displacement. Dipti Rawal, Founder at PeopleIQ, noted that many firms are quietly eliminating repetitive roles or delaying onboarding without public announcements.

However, some business leaders argue AI is augmenting rather than replacing jobs. Saurabh Garg of NoBroker said AI helps prevent operational burnout, while Amol Deshpande of RPG Group stated AI's role in job augmentation currently outweighs job losses. RPG is retraining managers to facilitate human-AI collaboration.

The government and private sector are expected to announce joint reskilling initiatives next week, focusing on AI literacy and digital transition programs for displaced workers.