Key facts
- AI was cited as the reason for 40% of 97,006 US job cuts in May.
- This is the highest monthly total for AI-cited layoffs since Challenger began tracking in 2023.
- In 2026, AI has been cited for 87,714 cuts, surpassing 2025's total of 54,836.
- May 2026 saw the highest number of overall layoffs since 2020.
- Technology remains the leading sector for layoffs.
A report from Challenger, Gray & Christmas indicates that AI was cited as the reason for 40% of the 97,006 job cuts announced by US-based employers in May. This is the highest monthly figure since the firm began tracking AI as a cause for layoffs in 2023. Year-to-date in 2026, AI has been blamed for 87,714 job cuts, significantly exceeding the 54,836 cuts attributed to AI in all of 2025. Despite this trend, Andy Challenger, a labor expert at the firm, stated that AI is not yet the 'jobpocalypse' some predicted, suggesting it will ultimately enhance worker productivity, similar to past technological advancements. The report also noted that May 2026 experienced the highest overall layoff numbers since 2020, during the COVID-19 pandemic. The technology sector continues to lead in layoffs by a substantial margin. However, the extent to which AI is truly responsible for job losses is debated, with figures like OpenAI CEO Sam Altman suggesting companies may be 'AI washing' their layoffs by blaming the technology for other business-related reasons. Conversely, Apollo Global Management's chief economist Torsten Sløk has stated there is 'zero evidence of job losses because of AI,' referencing ADP employment data. Outside of AI, the primary reasons cited for layoffs this year include market and economic conditions, company closings, and restructuring.