Challenger says AI isn’t a ‘jobpocalypse’ yet but companies are citing it the most when announcing layoffs AI is now the primary reason cited by US companies for layoffs, accounting for 40% of job cuts in May 2026, according to a report from Challenger, Gray & Christmas. While AI-related layoffs have surpassed previous years, the report suggests AI is not yet the predicted ‘jobpocalypse’ and will ultimately enhance worker productivity. Other major reasons for layoffs include market and economic conditions, closings, and restructuring.

• AI was cited as the reason for 40% of US job cuts in May 2026, the highest monthly total since tracking began in 2023.
• Year-to-date 2026 AI-attributed layoffs (87,714) already exceed the total for 2025 (54,836).
• Technology remains the sector with the most layoffs by a significant margin.
• Other major reasons for layoffs include market/economic conditions, closings, and restructuring.
• Some figures, like OpenAI CEO Sam Altman, suggest companies may be ‘AI washing’ layoffs, blaming AI for decisions driven by other business factors. Continue reading https://www.businessinsider.com/challenger-ai-layoffs-economy-jobs-2026-6