A startup backed by $5.5 million in seed funding says it can use artificial intelligence to help the growing number of workers losing their jobs to the same technology, Bloomberg reported.
Pelgo, the AI-powered career transition platform, was featured in Bloomberg's Tech In Depth newsletter, which noted the inherent irony of the company's pitch: that AI can help workers who lose their jobs because of AI.
The company combines AI-driven tools with human counsellors to offer personalised job placement, reskilling and career transition services at a fraction of the cost of traditional outplacement firms.
CEO and co-founder Chieh Huang has argued that conventional career transition services are outdated and inaccessible, historically reserved for managers and senior executives while lower-level workers are left to fend for themselves.
Pelgo's AI agent matches displaced workers with suitable roles by analysing their skills, experience and market demand, while also building custom reskilling roadmaps for those looking to move into new AI-driven job categories such as prompt engineering and AI operations.
The company raised its seed round in February from Flybridge Capital Partners, with ENIAC Ventures, Primary Venture Partners and 645 Ventures also participating.
The timing is pointed: career services firm Challenger, Gray & Christmas reported that AI was cited as the leading reason for US job cuts in March, accounting for more than 15,000 of the roughly 60,600 redundancies announced that month.
Nearly 28,000 layoffs have been blamed on AI so far in 2026, on top of almost 55,000 AI-linked cuts across 2025.
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Pelgo's model is designed to serve companies and universities as well as individual workers, positioning itself as an affordable alternative that employers can offer displaced staff regardless of seniority.
The Bloomberg piece sat alongside coverage of Elon Musk's plans for a chip manufacturing plant called Terafab, reflecting the broader tensions between technology-driven investment and its impact on labour markets.The recap
- Startup offers AI tools to find jobs for displaced workers
- Spencer Soper reports the story in Bloomberg's Tech In Depth
- Photograph shows signage outside a Tesla hiring event in Nevada
