AI cited as primary reason for nearly 40% of U.S. job cuts in May 2026, 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 cutting jobs. This marks the third consecutive month of rising layoffs, signaling a significant shift in how companies are reallocating resources in response to AI adoption.
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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