AI cited as primary reason for nearly 40% of May's 97,000 job cuts, report finds
A new report from Challenger, Gray & Christmas reveals that U.S. employers announced over 97,000 job cuts in May 2026, the highest May total since 2020. Notably, AI was cited as the primary reason for nearly 40% of these layoffs, making it the leading cause companies give for job cuts. This marks the third consecutive month of rising layoffs, with numbers increasing from 48,307 in February to 97,000 in May. The trend reflects companies reallocating resources in response to AI adoption, according to Glassdoor's chief economist Daniel Zhao.
Key quotes
U.S. employers announced just over 97,000 job cuts in May 2026, according to a report released Thursday by outplacement firm Challenger, Gray & Christmas.
According to the report, which is based on company announcements of job cuts, employers cited AI as the primary reason for almost 40% of May's announced job cuts.
Many companies are 'changing how they are allocating resources' in response to AI, according to Glassdoor chief economist Daniel Zhao.
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