U.S. companies announced 97,006 layoffs in May, up 16% from April and 3% from a year earlier, according to Challenger, Gray & Christmas. Artificial intelligence was cited as the reason for 38,579 cuts—40% of the total and the highest monthly AI-related tally since tracking began in 2023—led largely by the technology sector, which posted 38,242 cuts in May and 123,653 year-to-date, up 66% from 2025. Transportation ranked second for May reductions, while bankruptcy-related layoffs rose to their highest since February 2025; job cuts tied to mergers and acquisitions have surged more than sixfold this year. Despite the layoffs, the U.S. economy added 172,000 jobs in May. Companies are restructuring to retool for AI, with the pace of workforce change emerging as the key uncertainty.
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