Year-ahead outlook ‘improved further’, according to AIB data, despite fears of job displacement from AI

AI overtook market and economic conditions as the leading reason companies cited for cutting jobs in May, according to the most recent report from Challenger, Gray and Christmas.

Year-ahead outlook ‘improved further’, according to AIB data, despite fears of job displacement from AI

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The tech sector said last month it planned to eliminate 38,242 positions, the most since August 2024, according to data from outplacement firm Challenger, Gray & Christmas. So far…

And 40% of job cuts across all industries were blamed on AI that month.

AI was cited as the top reason for layoffs for the third straight month, accounting for 40% of all May cuts

US tech companies cut over 38,000 jobs in May 2026, the highest since August 2024, as AI becomes the top reason for layoffs amid $725B in planned spending.