U.S. employers announced 97,006 job cuts in May, with tech sector layoffs hitting a 21-month high due to AI-driven workforce reductions.
U.S. employers announced 97,006 job cuts in May, a 16% increase from April and 3% higher than the same month last year. This marks the third consecutive month of rising layoffs and the highest May total since 2020.
The tech sector led reductions with 38,242 job cuts, the steepest monthly decline since August 2024. Companies cited AI as the primary reason for layoffs, outpacing other factors. Despite this, tech remains the sector with the most hiring plans for the year.
Year-to-date job cuts total 397,755, down 43% from 2025’s record high, which was driven by federal workforce reductions. The trend highlights AI’s growing role in reshaping labor markets, though its long-term impact remains uncertain.