AI Drives 87,000 US Layoffs in Five Months—a New Record

Job Cuts Hit the US and Ukraine in 2026

According to НВ — Техно: In May 2026, US employers announced over 97,000 job cuts, with nearly 40% linked to artificial intelligence. Over the first five months of the year, AI accounted for 87,700 layoffs in the United States-more than the total for all of 2024 and 2025 combined. The tech sector was hit hardest, losing 38,242 positions in May alone.

According to Andy Challenger, Chief Revenue Officer at Challenger, Gray & Christmas:

“AI is now the top reason companies cite when cutting jobs.”

Why Layoffs Are Happening and What It Means

At the start of 2026, only 7% of job cuts were tied to AI. But that share has grown sharply. For example, Snap reported that laying off 1,000 employees would save the company $500 million. British bank Standard Chartered also plans to eliminate over 7,000 positions by 2030, targeting back-office roles in Chennai, Bengaluru, Kuala Lumpur, and Warsaw.

In Ukraine, just 5% of laid-off IT workers lost their jobs due to AI, according to the KSE Institute. The main reasons for Ukrainian layoffs were:

• company optimization (38%)
• financial difficulties (32%)

Still, 17% of Ukrainian IT workers have been laid off over the past year. Only 2.3% of job postings in the country face full automation risk. Experts note that generative AI could reshape skill requirements for about 40% of Ukrainian job listings.

A June 2026 World Economic Forum report found that 37% of young workers worldwide are in occupations with medium or high automation risk. Additionally, 28% of new entrants believe at least half of their skills will be obsolete within three years. As Cloudflare CEO Matthew Prince put it:

“I did this because business is changing, and to secure our future success, Cloudflare must change with it.”

In May 2026, total nonfarm employment in the US rose by 172,000, while the unemployment rate held steady at 4.3%. These figures suggest that despite significant layoffs, the US labor market still shows some positive momentum. However, economist Gregory Daco commented:

“When you announce layoffs in general, markets and investors don’t see it as good news. But when you say you’re cutting jobs because of AI, from a communications standpoint, that’s seen as positive.”

Overall, the labor markets in both the US and Ukraine remain complex and dynamic under the influence of technology and AI. The rise in automation-related job cuts underscores the need for workers to adapt to new market demands and develop fresh skills. This shift may reshape employment structures, demanding new solutions for those at risk of losing their jobs. Tracking how technology trends affect the workforce will continue to be a key focus for economists and analysts.

As the impact of artificial intelligence continues to reshape the job market, many tech giants are also making significant cuts. A closer look at the recent trends reveals that major companies are slashing jobs in unprecedented numbers, reflecting a broader shift towards automation and efficiency. This growing reliance on AI not only affects employment in the United States but also has implications for the global workforce.