In 2026, artificial intelligence has emerged as the predominant catalyst for job reductions in the United States, accounting for almost 40% of layoffs in May.
Layoffs linked to AI have already eclipsed the aggregate total from the previous two years, severely impacting the tech industry.
Published Date – 7 June 2026, 06:39 PM Representative image
New Delhi: With the onset of 2026, artificial intelligence has risen to the forefront as the major contributor to job losses in the United States.
A report by outplacement firm Challenger, Gray & Christmas reveals that layoffs associated with AI in the first five months have already outstripped the total from the preceding two years.
The report highlights that U.S. employers disclosed over 97,000 job cuts in May 2026—marking the highest layoff figure for that month since the COVID-19 pandemic began in 2020.
Workforce reductions have shown a consistent upward trajectory for three months, escalating from 48,307 in February to 60,620 in March, 83,387 in April, and surpassing 97,000 in May.
According to the analysis, artificial intelligence represented nearly 40% of all announced layoffs in May, underscoring the profound influence of automation on the labor market.
The proportion of job cuts attributed to AI has surged significantly throughout the year, rising from 7% in January to 10% in February, then 25% in March, followed by 26% in April, ultimately culminating in May’s dramatic increase.
In the month of May alone, organizations cited 38,579 job terminations as a result of automation and AI integration, constituting the highest monthly total since Challenger, Gray & Christmas began monitoring AI-related layoffs in 2023. This spike advanced the cumulative figure of AI-driven job cuts in 2026 to an alarming 87,714.
The report indicates that this total has already surpassed the combined AI-related layoffs from the prior two years, which were documented at 54,836 in 2025 and 12,742 in 2024.
Andy Challenger, chief revenue officer of Challenger, Gray & Christmas, emphasized that AI is now the leading rationale provided by companies for workforce reductions, signaling an accelerated shift toward automation in employment restructuring.
The technology sector has emerged as the most adversely affected industry. In May, U.S.-based tech companies announced 38,242 job cuts, the highest monthly total since August 2024.
Year-to-date, layoffs in the technology sector have soared by 66%, totaling 123,000, rendering it the most impacted sector in the U.S. job landscape.
The report indicates that this sector has experienced nearly three times as many job reductions as the second most affected industry.
Source link: Telanganatoday.com.
