US technology companies announced 38,242 job cuts in May 2026, marking the highest monthly total in nearly two years since August 2024 [1, 2]. This surge contributed to a total of 123,653 tech job cuts so far this year, a more than 65% increase compared to the same period in 2025 [1, 2].
The rise in tech layoffs contrasts with an overall 7% decline in total private-sector job cut announcements across the US over the past five months compared to the previous year [2]. Experts attribute most tech sector job reductions to advances in artificial intelligence. Andy Challenger, Chief Revenue Officer at Challenger, Gray & Christmas Inc., said, "The labour market is being reshaped by technology in real time. AI is now the leading reason companies give for cutting jobs" [2].
Despite the surge in tech layoffs, filings for unemployment insurance have not seen a meaningful increase, as most of the cuts target white-collar positions [2]. Meanwhile, tech firms continue to have strong hiring plans, with US employers announcing 80,472 planned hires this year across all sectors, the largest of any industry [2].
The broader US labor market is expected to show strength as well. The upcoming government jobs report, due June 5, 2026, is expected to reveal 85,000 jobs added in May, marking the strongest three-month gain in more than a year [2].
