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04.06.202609:38:50UTC+00US Job Cuts Rise in May

US-based employers announced 97,006 job cuts in May 2026, up from 83,387 in April and the highest May total since 2020. It was also the third consecutive monthly increase in layoffs. For the third month in a row, artificial intelligence was cited as the primary driver of the reductions.

The technology sector led with 38,242 announced cuts in May, the highest monthly total for that industry since August 2024. It was followed by transportation (6,909), services (6,288) and fintech (5,731).

“On top of the headline AI story, we’re seeing a sharp rise in cuts tied to acquisitions and mergers and a jump in bankruptcy-related losses, which tells me companies are restructuring aggressively as they reposition for an AI-driven economy,” said Andy Challenger of Challenger, Gray & Christmas.

Year to date, employers have announced 397,755 job cuts, a 43% decline from the same period last year, when reductions in the federal workforce pushed totals to historic highs. Excluding that one-off factor, 2026 is tracking roughly in line with 2024.

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