Tech sector layoffs hit 38,000 in May as AI investments drive workforce restructuring
By
Keenan Gibson
Front-window bakery material. Catches the eye, delivers the goods.
Summary
Technology companies announced 38,000 job cuts in May 2025, the highest monthly total in nearly two years, as firms increasingly redirect resources toward artificial intelligence investments. According to Challenger, Gray & Christmas, the tech sector has now announced 123,000 job cuts year-to-date. The layoffs reflect a broader industry shift where companies are restructuring workforces to prioritize AI development and deployment.
Key quotes
· 3 pulledTechnology companies announced the highest number of job cuts in nearly two years during May as firms continue investing heavily in artificial intelligence.
According to outplacement firm Challenger, Gray & Christmas, the tech sector announced plans to eliminate 38,000 positions last month, the largest number of cuts since August 2024.
So far this year, technology companies have announced 123,000 job cuts.
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