, continuing to be the main cause of US work cuts for the third consecutive month.
According to a recent report from global outplacement and executive coaching firm Challenger, Gray &, Christmas, companies announced 97, 006 job cuts in May, an increase of 16 % from the 83, 387 cuts in April, and an increase of 3 % from the 93, 816 job cuts announced last May.
For the third consecutive month, AI was the main cause of job cuts, with 38, 579 of those breaks coming from AI. Since Challenger began tracking it in 2023, it has the highest monthly total, accounting for 40 % of all job cuts that were made public in May.
” Technology is transforming the labour market in real time. AI is now the main cause of job losses for businesses, with the majority of them citing technology, according to Andy Challenger, general revenue officer of Challenger, Gray &, Christmas.
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The technology industry announced 38, 242 job cuts in May, the most in the industry since August 2024. Tech firms have announced 123, 653 job cuts in 2026, an increase of 66 % over the same time in 2025, which is significant and leads other industries in job cuts this year by a significant margin.
” AI is not yet the jobpocalypse that some people predicted.” Our data indicates that companies are now acting on it, citing AI for more cuts than any other cause, just like it did with email and spreadsheets before it, but Challenger explained that the technology will eventually increase employee productivity.
He continued,” The open question is not whether AI changes the workforce, but how quickly.”
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The travel industry announced the second-most job cuts in May, resulting in a total of 40, 388 work cuts, an increase of 449 % over the same time last year.
In May, services firms eliminated 6,268 work, bringing the total number of jobs in the firm’s 2026 to 17,065, down 61 % from the same time last year.
This year, manufacturers of care and products have also announced 30 414 career cuts, which is a 17 % increase over the same time last year.
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5, 637 job cuts were attributed to bankruptcy-related cuts in May, which was second-place. Since February 2025, there have been 35 and 172 cutbacks that have been attributed to bankruptcy.
In that time, 1189 reduces were attributed to closings, 66, 733, and mergers and acquisitions, a total of 69, 645 cuts were made in 2026. In comparison to the 1, 889 work reduces attributed to mergers and acquisitions in the same period last year, the number has increased by more than sixfold.
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According to Challenger,” We’re seeing a sharp increase in reduces tied to mergers and acquisitions and a rise in bankruptcy-related costs,” which indicates that businesses are restructuring violently as they reposition for an AI-driven economy.
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