{
  "id": 12827550,
  "title": "As companies spend more on AI, many spend less on workers",
  "url": "https://urgent.news/2026/10/08/as-companies-spend-more-on-ai-many-spend-less-on-workers",
  "topic": "ai",
  "section": "AI",
  "published": "2026-10-08T08:00:00.000Z",
  "source": {
    "name": "Fast Company",
    "slug": "fast-company",
    "url": "https://www.fastcompany.com/91620140/as-companies-spend-more-on-ai-many-spend-less-on-workers"
  },
  "original_language": "en",
  "account": "As companies increasingly invest in artificial intelligence (AI), some are allocating fewer resources to their workforce, according to a recent study by Challenger, Gray & Christmas. The study found that AI was the leading cause of job cuts in 2026, accounting for about 21% of all layoffs. These cuts have primarily affected the technology sector, with companies seeking to reinvest in AI technology rather than their human workforce. Andy Challenger, the firm's chief revenue officer, explained that AI products and investments are heavily influenced by AI development, making these companies more susceptible to AI-driven job loss. However, most employers prefer to cut costs before resorting to layoffs, which could serve as an early warning sign of impending redundancies.\n\nThe shift in resources from human workers to AI is not limited to layoffs. A survey by Resumebuilder.com revealed that 54% of U.S. business leaders plan to reduce employee compensation and reallocate funds towards AI spending this year. Bonuses are the most common budget item to be redirected, followed by equity, raises, benefits, and base salaries. Despite this, hourly wages have risen by 3% this year, but inflation has increased by 3.4%, resulting in a net loss of earnings for workers.\n\nBusiness leaders face pressure to stay current with AI developments, often turning to AI investments while reducing employee compensation. Stacie Haller, Resumebuilder.com's chief career adviser, emphasized the importance of transparency and honesty in communication with employees about these decisions. Companies seem to be divided into two camps: those prioritizing AI and technology or those valuing and investing in their human workforce. Businessolver's chief human resources officer, Marcy Klipfel, suggested that organizations with a human-centric approach are more likely to invest in workforce development, while those relying on AI may cut headcount and focus solely on technology. Public companies, in particular, may face pressure to cut staff and invest in AI without upskilling their remaining workforce, potentially hindering long-term AI adoption and effectiveness.",
  "summary": "As organizations race to adopt AI , some are investing in workforce development to complement the technology, while others are shifting resources to tech—and away from people. According to a recent study by outplacement and executive coaching firm Challenger, Gray & Christmas, AI is the leading cause of job cuts in 2026 and was cited in more than 120,000 dismissals in the first nine months of the…",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}