U.S. employers announced 97,006 job cuts in May, a 16% increase from April and the highest total for the month since 2020, as AI continued to drive workforce reductions across industries, according to a June 4 report from Challenger, Gray & Christmas.
Here are 10 key findings from the report:
- The May total rose from 83,387 announced cuts in April and was up 3% from the 93,816 cuts announced in May 2025. It marked the third consecutive month of increasing layoffs, with announced cuts climbing from 48,307 in February to 97,006 in May.
- May’s job-cut total was the highest for the month since May 2020, when employers announced 397,016 reductions during the height of the COVID-19 pandemic.
- Technology companies led all sectors in announced layoffs during May, reporting 38,242 job cuts, the highest monthly total for the industry since August 2024. Through the first five months of 2026, the sector has announced 123,653 cuts, up 66% from the same period last year.
- AI was cited as the reason for 38,579 job cuts in May, accounting for 40% of all announced reductions during the month. It was the third consecutive month that AI led all reasons for layoffs and represented the highest monthly total attributed to the technology since Challenger began tracking it in 2023.
- For the year, employers have cited AI in 87,714 job cuts, representing 22% of all announced layoffs in 2026 and already exceeding the 54,836 AI-related cuts recorded during all of 2025, according to the report.
- Transportation was the second-leading sector for layoffs this year, announcing 40,388 cuts through May, a 449% increase from the same period in 2025. Healthcare and health products manufacturers, including hospitals, have announced 30,414 job cuts so far this year, up 17% from 26,008 during the same period last year.
- Other industries reporting notable layoffs included pharmaceutical companies, which announced 5,045 cuts in May and 12,485 year to date, and financial technology companies, which announced 5,731 cuts in May, most of which were attributed to AI.
- Government entities announced 4,499 job cuts in May, bringing the year-to-date total to 15,918. That figure is down 94% from the 284,827 government-related cuts announced through May 2025.
- Among the reasons cited for layoffs, bankruptcy accounted for 5,637 job cuts in May, while company closings were linked to 14,546 cuts and restructuring to 9,942.
- Despite the increase in layoffs, employers announced 80,472 planned hires through May, slightly above the 79,741 announced during the same period in 2025. Technology led hiring plans in May with 11,250 announced positions, followed by electronics with 3,158 and insurance with 1,435.
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