AI-Related Layoffs Hit Record 38,579 in U.S. May, Up to 40% of Total Cuts

According to Challenger Report, AI-related layoffs in the United States reached a record 38,579 in May, marking the third consecutive month the technology ranked as the top reason for workforce reductions. The May figure represents 40% of all layoffs announced that month, a sharp increase from 7% in January, 25% in March, and 26% in April.

Year-to-date AI-related layoffs totaled 87,714, accounting for 22% of all 2026 dismissals—already surpassing the full-year 2025 total of 54,836, according to the Challenger Report data cited by Jin10.