US Job Cuts Rise in May

2026-06-04 09:38 By Joana Taborda 1 min. read

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.



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