Tech Industry Loses 123,000 Jobs This Year—AI Is The Most Cited Reason For Layoffs
- U.S. tech companies announced 38,242 job cuts in May, the industry's heaviest month of reductions in nearly two years, according to data published Thursday by Challenger, Gray & Christmas.
- Artificial intelligence has emerged as the leading reason for layoffs this year, with Challenger reporting that companies cited AI adoption for 87,714 cuts so far in 2026, far surpassing 54,836 in 2025.
- The technology industry has eliminated over 123,000 positions since January, an increase of more than 65% from last year; other reasons cited include "market and economic conditions," "closings," and "restructuring."
- Despite cutting roles, tech firms announced 11,250 new hiring plans in May, though OpenAI CEO Sam Altman recently criticized companies for "AI washing" by blaming layoffs on the technology when other business factors were at play.
- Corporate leaders warn that middle management and white-collar jobs remain most vulnerable to AI displacement, with executives predicting hiring for entry-level positions will slow in the coming years as remaining roles demand greater skills.
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AI Layoffs Already Have Surpassed Last Year's Total. Tech Workers Are Being Cut First.
The post AI Layoffs Already Have Surpassed Last Year’s Total. Tech Workers Are Being Cut First. appeared first on 24/7 Wall St.. The artificial intelligence boom that’s pushing market caps to records is reshaping employment. Challenger, Gray & Christmas data highlighted on CNBC’s Closing Bell Overtime on June 4 indicates that more than 87,000 layoffs this year have been tied to AI, already eclipsing all of 2025’s full-year total just five months…
Tech Report: Tech layoffs rise as companies increase AI investments
(NBC)- Technology 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 reductions. Meanwhile, Microsoft is fa…
(New York = Yonhap News) Correspondent Lee Ji-heon = A private intelligence firm has reported that U.S. tech companies laid off the most employees in May, the highest number in one year and nine months.
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