The tech industry has a new favorite euphemism for firing people: “AI-driven efficiencies.” And it’s being deployed at a pace not seen in half a decade.
Through the first five months of 2026, the technology sector announced 123,653 job cuts, a 66% year-over-year increase, according to data from Challenger, Gray & Christmas. The Bureau of Labor Statistics’ JOLTS data puts the information sector’s layoffs and discharges rate at 2.2%, a level that hasn’t surfaced in years and one that signals something more structural than a seasonal blip.
AI: the reason, the excuse, or both
AI was the single leading reason companies gave for cutting staff for three consecutive months through May 2026.
May alone saw 38,579 roles explicitly attributed to artificial intelligence. That figure represented 40% of all cuts during the month, a record share.
