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The wave of AI-driven mass layoffs is fading: the labor market finds a new balance

ER10 · September 4, 2026 · 1Cifer

The wave of AI-driven mass layoffs is fading: the labor market finds a new balance

er10 asked whether AI-driven mass layoffs are over, and the data suggests the peak has passed. Companies that slashed headcount under the banner "AI will do everything" met reality — some functions had to be brought back, and the savings proved humbler than the slide decks. The market is shifting from sharp cuts to a quiet restructuring of roles.

The new equilibrium looks like this: routine positions shrink naturally — through attrition and hiring freezes — while demand moves toward people who can work in tandem with AI. It isn't AI that fires people; it's competitors who learned to do the same work with a smaller team.

For employers in Kazakhstan this phase yields a practical strategy: don't lay off "because of AI" — redescribe the roles. An inventory of each position's tasks — what automation takes, what stays human — produces a retraining plan cheaper and safer than mass cuts followed by rehiring. Companies that walked this path quietly are now winning on both money and reputation.

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