Challenger says AI is the No. 1 reason companies are giving for job cuts in 2026 thus far. In May alone, it accounted for 40% of cuts.

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.

Challenger says AI is the No. 1 reason companies are giving for job cuts in 2026 thus far. In May alone, it accounted for 40% of cuts.