HCM & HRIS

AI becomes top cause of US job cuts in 2026 as layoffs surge: Report

June 8, 2026
www.ETHRWorld.com
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  • Published On Jun 8, 2026 at 03:36 PM IST

< />New Delhi, Artificial intelligence has emerged as the leading reason behind job cuts in the United States this year, with AI-driven layoffs in the first five months of 2026 already surpassing the combined total recorded over the previous two years, according to a report by outplacement firm Challenger, Gray & Christmas.<br><br><!– PROMOSLOT_M –>The report showed that US employers announced more than 97,000 job cuts in May 2026, making it the highest May layoff total since the onset of the Covid-19 pandemic in 2020.<br><br><div class=” article-detail-ad-slot=”” captionrendered=”1″ data-src=”https://etimg.etb2bimg.com/photo/131585019.cms” height=”442″ loading=”eager” src=”https://hr.economictimes.indiatimes.com/images/default.jpg” width=”590″></img></p> </div> <p>Workforce reductions have increased steadily for three consecutive months, rising from 48,307 in February to 60,620 in March, 83,387 in April and over 97,000 in May.</p> <p>According to the report, artificial intelligence accounted for nearly 40 per cent of all announced layoffs in May — highlighting the growing impact of automation on employment.</p> <p>The share of AI-related job cuts has risen sharply throughout the year, climbing from 7 per cent in January to 10 per cent in February, 25 per cent in March and 26 per cent in April before surging further in May.</p> <p>In May alone, companies attributed 38,579 job cuts to automation and AI adoption, the highest monthly figure since Challenger, Gray & Christmas began tracking AI-related layoffs in 2023. The latest numbers pushed the total count of AI-linked job cuts in 2026 to 87,714.</p> <p>The report noted that this figure has already exceeded the combined AI-related layoffs recorded in the previous two years, which stood at 54,836 in 2025 and 12,742 in 2024.</p> <p>“AI is now the leading reason companies give for cutting jobs,” said Andy Challenger, chief revenue officer of Challenger, Gray & Christmas, underscoring the accelerating role of automation in workforce restructuring.</p> <p>The technology sector emerged as the worst affected industry. US-based technology companies announced 38,242 job cuts in May, marking the highest monthly total since August 2024.</p> <p>On a year-to-date basis, layoffs in the technology sector have jumped 66 per cent to 1.23 lakh, making it the hardest-hit industry in the US job market.</p> <p>According to the report, the sector has recorded nearly three times as many job cuts as the next most affected industry.</p> <div> <div> <ul> <li><a href=IANS

  • Published On Jun 8, 2026 at 03:36 PM IST

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