Key facts
- US employers announced 97,006 job cuts in May.
- May saw a 16% increase in job cuts from April.
- The tech sector accounted for 38,242 job cuts in May.
- Companies are citing AI as the primary reason for job cuts.
- May 2024 marked the highest monthly job cut total for the tech sector since August 2024.
US-based employers announced 97,006 job cuts in May, marking a 16% increase from April and a 3% rise from May of the previous year. This figure represents the highest total for the month of May since 2020 and signifies the third consecutive month of increasing job cuts. While the year-to-date total of 397,755 job cuts is down 43% compared to the same period last year, reductions in the federal workforce significantly contributed to last year's elevated numbers. In May, the technology sector was the primary driver of layoffs, announcing 38,242 job cuts, the highest monthly figure since August 2024. Firms are increasingly citing Artificial Intelligence (AI) as the main reason for these workforce reductions. The labor market is undergoing a significant transformation driven by technology, with AI now being the leading justification companies provide for cutting jobs, particularly within the technology industry. Although AI is not yet causing the widespread job losses some predicted, it is demonstrably increasing worker productivity, and companies are actively implementing it, leading to more job cuts than any other reason cited. The pace at which AI will change the workforce remains an open question.