U.S. tech companies announced 38,242 job cuts in May, more than any other sector and the industry's heaviest month of reductions in nearly two years, according to data published Thursday by outplacement firm Challenger, Gray & Christmas. This monumental figure lifted the sector's 2026 running total to 123,653, up more than 65% on the same stretch of 2025, even as tech held the largest hiring plans of any industry and as the biggest firms raised their combined AI capital spending toward $725 billion for the year. AI was, of course, the most-cited reason for layoffs across every sector for the third month running.
Employers across all industries announced about 97,000 cuts in May, up from 83,387 in April. Transportation ran a distant second to technology at 6,909, followed by services at 6,268. Meanwhile, U.S. employers have announced 80,472 planned hires in 2026 to date, with tech accounting for the largest share of any sector.
