Artificial intelligence has claimed more tech jobs in the US in the first five months of 2026 than it did in the entirety of 2024 and 2025, according to data from outplacement firm Challenger Gray.
As the data suggests, US-based technology companies have announced 38,242 job cuts in May alone, which is the highest monthly total since August 2024. On a year-to-date basis, tech sector job cuts have risen 66% to 1.23 lakh, the highest of any sector and three times larger than the next closest industry.
Perhaps most importantly, AI was cited as the primary reason for the job cuts for the third consecutive month in May, with 38,579 losing their jobs due to automation. This is the highest figure since Challenger began tracking AI-linked layoffs in 2023. In fact, May's tally of job cuts due to AI accounts for 40% of all layoffs announced in the month. This number was 7% in January.
In 2026 so far, AI has been cited in 87,714 job cuts. This has already surpassed the combined figure of 54,836 recorded in 2025 and 12,742 recorded in 2024.
With seven months remaining, 2026 is on course to be by far the most disruptive year for AI-driven displacement in the labour market, at least in the US.
These numbers are quite significant as it puts hard numbers on what had largely been a theoretical concern. The speed of the shift, in particular, suggests the AI adoption is not happening gradually and is happening much faster than anticipated.
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