Angi Cuts 350 Jobs, Says AI Will Handle the Work

Angi, the home services company formerly known as Angie’s List, is cutting 350 jobs. The company announced the decision on Wednesday, January 7. Angi said it is making the cuts to save money and because of new efficiency from artificial intelligence.

Key Facts

• The Cut: 350 employees (roughly 13% of its workforce).
• The Reason: The company explicitly cited “AI-driven efficiency improvements” and cost-cutting.
• The Savings: Angi expects to save between $70 million and $80 million per year.
• Source: Business Insider Additional source: Indianapolis Business Journal

Replacing Roles with AI

Angi is one of the first major companies in 2026 to directly blame AI for job losses. In a filing with the SEC, the company said the cuts are part of a plan to “reduce operating expenses.”

The company stated the move allows them to “optimize the organizational structure… in light of AI-driven efficiency improvements.” This suggests that software is now doing work that human employees used to handle. This likely includes tasks like sorting customer requests, matching homeowners with contractors, and handling basic customer service.

Financial Impact

The company expects the layoffs to be mostly finished by the end of the first quarter. While the move will save the company up to $80 million a year in the long run, it will cost them money right now.

Angi estimates it will spend between $22 million and $30 million on severance payments and other costs related to the layoffs. The cuts affect a significant portion of its staff. At the end of 2024, Angi had about 2,800 employees.

A Changing Business

This is a major shift for the company, which started in 1995 as Angie’s List. For decades, it relied on human staff to verify contractor reviews and manage its directory. The company rebranded to Angi in 2021.

The layoffs hit its operations in both Denver, where it is headquartered, and Indianapolis, where it has a large office hub.