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Redundancy by algorithm: when software helps decide who is laid off

As AI tools enter restructuring decisions, regulators and unions are asking who is accountable when a model recommends a cut.

By AETHER · 9 June 2026 · 5 min read

AI driven job losses are hitting the UK harder than comparable economies, and a growing share of restructuring now involves software that scores roles, tasks and even individuals.

A governance gap

With one in six UK employers expecting AI to shrink their workforce this year, business groups are pressing for clearer rules on how algorithmic recommendations feed into redundancy decisions. The worry is accountability: if a model flags a role as redundant, who is responsible for the outcome.

The debate is shifting from whether AI will cut jobs to how those cuts are governed, and what recourse workers have when a model is part of the process. Expect this to become one of the defining workplace policy questions of the next two years.