Tech layoffs in the US are accelerating. In May, US-based tech companies cut 38,242 jobs, the highest monthly total since August 2024, based on data from Challenger Gray. So far this year, job cuts in the tech sector have climbed 66% compared to the same period last year, reaching 123,653.
That makes tech the hardest-hit sector by a wide margin, with roughly three times the cuts seen in transportation, the next closest. AI was named as the primary driver of layoffs for the third straight month.
In May alone, 38,579 cuts were linked to AI, the highest since Challenger started tracking that category in 2023. That represents about 40% of all layoffs announced last month, up sharply from just 7% in January. Year-to-date, AI has been cited in 87,714 job cuts in 2026, accounting for 22% of the total. That figure has already surpassed the full-year totals for both 2025 (54,836) and 2024 (12,742). The trend is clear: AI is steadily reshaping how and where companies allocate headcount.