- Challenger said AI was the cited reason for 40% of job cuts in May.
- In 2026, AI is the leading reason companies cite for layoffs.
- The outplacement firm also said this isn’t “yet the jobpocalypse some predicted.”
Outside of AI, Challenger’s report found that so far this year, the next biggest reasons attributed to layoffs are “market and economic conditions,” which have been cited for 69,645 cuts; “closings,” which have been cited for 66,733 cuts; and “restructuring,” which has been attributed to 52,249.
