Updated · Challenger, Gray & Christmas, Inc. · Jun 4
U.S. Employers Announce 97,006 May Job Cuts as AI Drives 40% of Layoffs
Updated
Updated · Challenger, Gray & Christmas, Inc. · Jun 4
U.S. Employers Announce 97,006 May Job Cuts as AI Drives 40% of Layoffs
3 articles · Updated · Challenger, Gray & Christmas, Inc. · Jun 4
Summary
97,006 job cuts were announced by U.S. employers in May, up 16% from April and the highest May total since 2020, extending a three-month climb from 48,307 in February.
38,579 of those cuts were tied to AI, a record since Challenger began tracking the reason in 2023, making AI the top driver for a third straight month and 40% of May layoffs.
38,242 technology cuts made tech the hardest-hit sector in May and pushed its 2026 total to 123,653, up 66% from a year earlier as companies spend heavily on AI.
397,755 cuts have been announced so far in 2026, down 43% from the DOGE-distorted pace of 2025, while merger-, bankruptcy- and closing-related layoffs also rose as firms restructure.
80,472 planned hires through May slightly exceeded last year's 79,741, but Challenger said hiring remains historically weak by pre-pandemic standards even as AI reshapes workforce demand.