Hacker News
US Tech Sector Cut 38,242 Jobs in May — AI Cited as Top Reason for Third Straight Month
Challenger, Gray & Christmas data shows U.S. tech firms announced 38,242 job cuts in May 2026, the sector's heaviest month in nearly two years, pushing the 2026 tech total to 123,653 (up 65% year-over-year). AI was specifically cited in 38,579 cuts — 40% of all May layoffs and the highest monthly AI-attributed total since tracking began in 2023; the 2026 AI-cited total of 87,714 already exceeds all of 2025. Meanwhile Google, Amazon, Microsoft, and Meta plan a combined $725B in 2026 capex, up 77%.
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