AI Layoffs Surge: Middle Managers Hit as Companies Deny Job Replacements

A surge in U.S. layoffs is being driven by corporate restructuring centered on artificial intelligence, even as companies publicly deny that AI is directly replacing workers. In 2026, firms have announced approximately 113,000 AI-linked job cuts, representing 24% of total layoffs this year. Middle managers are being disproportionately affected as executives adopt "flatter" structures, eliminating coordination roles that AI can now automate . Cloudflare cut over 1,100 roles in May, targeting "measurer" positions like middle management, finance, and legal . Block reduced its workforce by 4,000 positions in February, with CEO Jack Dorsey citing efficiency gains from AI-driven, flatter teams . Etsy laid off 220 employees in August while asserting the move was "not driven by AI," though CEO Kruti Patel Goyal acknowledged that AI is changing required skills . Public anxiety is rising, with 55% of Americans under 30 now more concerned than excited about AI .