The technology was tied to a record 38,579 U.S. layoffs in May, accounting for 40% of all job cuts for the month.

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 data shows tech leading both layoffs and hiring.

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…