US-based employees announced 443,600 job cuts across industries from January to June 2026, according to data from Challenger, Gray & Christmas. While, the total highlights a decline of 43% as compared to the same period in 2025, when the federal workforce reductions drive historic highs.

As per the report, this year, the technology sector has emerged as the most-affected industry this year. From January to June, the technology companies cut 123,653 jobs, marking a 66% increase compared to the same period last year. The sector has also consistently led in staff reductions with artificial intelligence cited as the primary reason for layoffs for three consecutive months. Andy Challenger, chief revenue officer at Challenger, Gray & Christmas, noted: “AI is now the leading reason companies give for cutting jobs and the primary industry citing it is technology.”

May: The brutal month for tech

The most severe wave of layoffs came in May 2026, when employers announced 97,006 job cuts overall, including 38,242 in technology alone. Analysts described May as the most “brutal” month for tech layoffs, coinciding with restructuring plans at major firms such as Meta, which cited AI adoption as a key driver of workforce reductions.

AI is reshaping the workforces

As per the report, AI accounted to 22% of all the job cuts this year, highlighting the disruptive impact on white-collar roles.

The companies also argue that spreadsheets and email in earlier decades, AI will ultimately boost productivity, but the transition is already displacing thousands of employees. Meta CEO Mark Zuckerberg called AI “the most consequential technology of our lifetimes” in a memo explaining the company’s decision to cut thousands of jobs.

Hiring remains weak

Despite layoffs, US employers announced 80,472 planned hires through May, a figure that remains historically low compared to pre-pandemic standards. This imbalance highlights the challenges facing workers as industries restructure around automation and AI.