Outplacement firm Challenger reported AI was the top stated reason for layoffs
for a third consecutive month in May, with 38,579 AI-related job cuts—the
highest monthly total since Challenger began tracking the category in 2023. AI
layoffs made up 40% of May's announced cuts (versus 7% in January, 25% in March
and 26% in April); year-to-date AI-related cuts total 87,714, or 22% of 2026's
announced layoffs, already exceeding 2025's full-year AI tally of 54,836.
