US Job Cuts Rise in May

US-based employers announced 97,006 job cuts in May 2026, the most since January, compared to 83,387 in April. It is the highest May total since 2020 and also marks the third straight month that cuts have risen. AI was the main reason for the cuts, leading for a third straight month. Technology announced 38,242 job cuts in May, the highest monthly total for the sector since August 2024. Transportation (6,909), services (6,288) and fintech (5,731) followed. “On top of the headline AI story, we’re seeing a sharp rise in cuts tied to acquisitions and mergers and a jump in bankruptcy-related losses, which tells me companies are restructuring aggressively as they reposition for an AI-driven economy,” said Andy Challenger from Challenger, Gray & Christmas. So far this year, employers have announced 397,755 cuts, down 43% from last year, when reductions to the federal workforce drove totals to historic highs. Stripping out that distortion, 2026 is running roughly even with 2024.

US-based employers announced 83,387 job cuts in April 2026, the most in three months, compared to 60,620 in March, but down 21% from the same month last year. April’s total is the third highest for an April month since 2009, with tech (33,361) announcing the most jobs, followed by warehousing (5,743) and services (4,110). Artificial Intelligence led all reasons for job cuts for the second month in a row, with 26% of total cuts. So far this year, employers have announced 300,749 job cuts, down 50% from the same period last year. Tech was the leading contributor (85,411) and AI has been cited for 49,135 cuts this year, and it is the third-leading cause of layoff plans. “Technology companies continue to announce large-scale cuts and are leading all industries in layoff announcements. They are also often citing AI spend and innovation. Regardless of whether individual jobs are being replaced by AI, the money for those roles is,” said Andy Challenger from Challenger, Gray & Christmas.

US-based employers announced 60,620 job cuts in March 2026, above 48,307 in February but well below 275,240 a year earlier. The technology sector recorded by far the highest number of job cuts in March (18,720), followed by pharmaceuticals (5,356), education (5,258), and financial (5,114). Artificial Intelligence (AI) led all reasons for job cuts, with 15,341 announced during the month, 25% of total cuts. Considering Q1, employers announced 217,362 job cuts, the lowest Q1 total since 2022, and down 16% from Q4 2025. “Removing the wave of federal layoffs announced in February and March of last year, job cut announcements in 2026 are closely following the pattern of 2025. Last year it was Government, Retail, and Technology. This year, it’s Technology, Transportation, and Healthcare,” said Andy Challenger, chief revenue officer for Challenger, Gray & Christmas.