U.S. Tech Sector Announces 38,242 Job Cuts in May, Largest Monthly Layoff Since August 2024

According to Challenger, Gray & Christmas Inc., the U.S. tech sector announced 38,242 job cuts in May 2026, marking the largest single-month layoff since August 2024. Year-to-date through May, the tech industry has eliminated 123,653 positions, up over 65% compared to the same period in 2025. Andy Challenger, chief revenue officer at Challenger, Gray & Christmas Inc., stated that artificial intelligence has become the primary reason companies are reducing headcount. Meta, Intuit, and Cisco are among major tech firms shifting research and investment focus toward AI-related capabilities.
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