The United States is witnessing a surge in job cuts driven by artificial intelligence, with layoffs linked to AI already exceeding those recorded in the previous two years combined. A recent report from outplacement firm Challenger, Gray & Christmas reveals that AI-related reductions are becoming the dominant cause behind workforce downsizing this year.
In May 2026 alone, employers announced over 97,000 job cuts—the highest monthly total since the early days of the Covid-19 pandemic. Nearly 40 percent of these cuts, amounting to 38,579 jobs, were attributed to automation and AI adoption. This figure represents the largest monthly AI-related layoff count since tracking began in 2023 and highlights a steep climb from just 7 percent in January to 26 percent in April.
The cumulative total of job cuts tied to AI in the first five months of 2026 reached 87,714, outpacing the combined 67,578 layoffs linked to AI in 2024 and 2025. This trend underscores how rapidly automation technologies are reshaping employment landscapes.
The technology sector has borne the brunt of this shift. Tech companies reported 38,242 layoffs in May alone, marking the highest monthly toll in nearly two years. On a year-to-date basis, the sector’s job cuts have soared by 66 percent, totaling 123,000, and exceeding those in any other industry by nearly threefold. These figures indicate that technology firms remain the hardest hit amidst ongoing restructurings influenced by AI implementation.