Managed service providers cut staff as AI takes over routine IT support

Nov 13, 2026
At the Canalys Forum, Focus Technology said it grew 30% and cut 12% of its headcount while lowering prices at renewal.

Managed service providers are cutting staff as AI takes over routine IT support work and puts pressure on per-user and per-device pricing, executives said at the Canalys Forum Americas in Scottsdale, Arizona, Channel Dive reports.

Chris Caprio, chief executive of Boston-based Focus Technology, said the company grew 30% this year and cut 12% of its headcount, though not every cut was driven by AI; the savings let it lower prices at contract renewals. Ryan Antonacci, chief technology officer of CSDNet, said his firm uses AI to shrink its back-end support team and keep renewal prices flat or lower. Auvik chief executive Doug Murray said fewer graduates are choosing networking certifications, and HPE said it is training its own staff on AI rather than hiring externally.

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