U.S. information sector layoffs surged to 2.3% in June, the highest since 2001, driven by AI-driven workforce reductions at major firms.
The U.S. information sector’s layoff rate climbed to 2.3% in June, a 20-year high, as companies cut 63,000 jobs. The increase of 0.7 percentage point from May marks the third-largest monthly total since April 2020.
Oracle and Microsoft led the reductions, with Oracle slashing 21,000 roles, or 13% of its workforce, citing AI deployment. The six-month moving average layoff rate reached 2.0%, more than double November’s level, as firms reallocate labor savings to AI infrastructure.
AI-related job cuts now account for 23% of all 2026 U.S. layoff announcements, though some firms may use the label to justify broader cost-cutting. The trend reflects a shift toward automation, even as tech spending on AI chips and data centers hits record highs.