Companies name AI as top reason for job cuts for second straight month: Analysis
By Steff Danielle Thomas
Published on May 9, 2026.
A report by Challenger, Gray & Christmas has revealed that companies are increasingly citing artificial intelligence as a reason for job cuts, marking a 38% increase from March. The report also revealed that for the second consecutive month, AI was cited as the leading reason for the job cuts. This comes amid growing concerns about the impact of AI on the workforce. Despite the increase in job losses, layoffs remain significantly below the pace of the previous year. Some businesses have suggested that AI could reduce future hiring needs, particularly for entry-level and white-collar positions. The White House is working to ensure the "best and safest tech" is being used to combat threats, but fears persist.
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