{"id":366,"date":"2026-06-04T15:10:40","date_gmt":"2026-06-04T15:10:40","guid":{"rendered":"https:\/\/coasttocoastmoverss.com\/?p=366"},"modified":"2026-06-04T15:10:40","modified_gmt":"2026-06-04T15:10:40","slug":"tech-industry-loses-123000-jobs-this-year-ai-is-the-most-cited-reason-for-layoffs","status":"publish","type":"post","link":"https:\/\/coasttocoastmoverss.com\/?p=366","title":{"rendered":"Tech Industry Loses 123,000 Jobs This Year\u2014AI Is The Most Cited Reason For Layoffs"},"content":{"rendered":"
\n

Timeline<\/h2>\n
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MAY 25, 2026<\/span>U.S. employers cut a total of 97,006<\/strong> jobs in May, the most recent found, and the tech sector leads with 38,242<\/strong> job cuts\u2014the most in a single month for the sector since August 2024.<\/p>\n

Read more Masayoshi Son\u2019s Net Worth Down $13 Billion As SoftBank Shares Slide\u2014Loses Asia\u2019s Richest Title To Ambani<\/a><\/p>\n<\/div>\n

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AI is now the leading reason cited for job cuts\u2014responsible for an estimated 38,579<\/strong> in May and 87,714<\/strong> year-to-date\u2014overtaking market and economic conditions, closures and restructuring.<\/p>\n<\/div>\n

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Tech is also the \u201cprimary industry\u201d citing AI for job cuts, Challenger said, but it\u2019s also the industry with the most new hiring plans\u2014announcing 11,250<\/strong> new positions in May.<\/p>\n<\/div>\n

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The tech sector has cut a total of 123,653<\/strong> jobs since January, up 66% from last year during the same period.<\/p>\n<\/div>\n

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MAY 25, 2026<\/span>Nvidia CEO Jensen Huang called CEOs who blame AI for layoffs “lazy” and said it doesn’t make sense from a businesses perspective that companies are already utilizing AI to such an extent people are being replaced: “I really hate that,” he said.<\/p>\n<\/div>\n

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MAY 20, 2026<\/span>Cloudflare CEO Matthew Prince blames artificial intelligence for the decision to cut 20% of its global workforce, or 1,000<\/strong> people, earlier this month, writing in an op-ed that the company has massively increased AI use in recent months and as a result, not longer needed middle managers, operations experts or parts of its auditing, finance, legal and compliance divisions.<\/p>\n<\/div>\n

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MAY 18, 2026<\/span>Meta, which will lay off 10% of its workforce Wednesday in a previously announced cut to jobs, tells 7,000 <\/strong>employees they will be reassigned to focus on artificial intelligence initiatives that \u201cwill make us more productive and make \u2060the \u200bwork more rewarding,\u201d Janelle Gale, Meta\u2019s head of human resources, said in an internal memo.<\/p>\n<\/div>\n

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MAY 13, 2026<\/span>Cisco Systems announces it will cut 4,000<\/strong> jobs and openly admits the layoffs are due to AI adoption at the company.<\/p>\n<\/div>\n

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MAY 11, 2026<\/span>General Motors lays off between 500 and 600<\/strong> information technology workers and while the company declined to comment on if AI played a role when asked by CNBC, one unnamed employee said the company plans to replace some of the fired workers with new employees with an AI skill set and another said the company is \u201cgoing to push AI for everyday work and everything else.\u201d<\/p>\n<\/div>\n

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MAY 6, 2026<\/span>Armstrong, in an email to Coinbase employees Tuesday, blames a “volatile” crypto market and AI for the roughly 700<\/strong> job cuts, explaining that some teams will be cut down to singular people expected to do the same job of many with the help of AI agents, directing remaining employees to “leverage AI across every facet of our jobs.”<\/p>\n<\/div>\n

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APRIL 23, 2026<\/span>Meta will layoff 10% of its workforce and won’t hire workers for 6,000 open jobs in hopes of offsetting the money it’s spending to integrate artificial intelligence into the company. Meta\u2019s announced job cuts, roughly 8,000<\/strong> scheduled for May 20, are part of a plan initially reported by Reuters to layoff what could amount to more than 20% of the company (which employs roughly 75,000 people) as it invests in AI and plans to utilize AI-assisted workers. <\/p>\n<\/div>\n

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APRIL 15, 2026<\/span>Billionaire Evan Spiegel tells employees of Snap, the parent company of social media app Snapchat, that 1,000<\/strong> jobs would be cut because \u201crapid advancements in artificial intelligence\u201d will allow the same work to be done by a smaller group of people. The move is expected to save the company $500 million by the second half of 2026.<\/p>\n<\/div>\n

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MARCH 31, 2026 <\/span>Oracle, founded by billionaire Larry Ellison, is cutting 20,000 to 30,000<\/strong> employees as the company heavily invests in building out AI infrastructure. <\/p>\n<\/div>\n

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MARCH 25, 2026 <\/span>Meta, led by the world’s fifth-richest-person Mark Zuckerberg, lays off 700<\/strong> people, the New York Times reported, in cuts that “underline how much A.I. has changed the tech industry.”<\/p>\n

Read more House Republicans Ask DOJ To Criminally Investigate Epstein Friends Philip Levine And Fr\u00e9d\u00e9ric Fekkai<\/a><\/p>\n<\/div>\n

\n

MARCH 19, 2026<\/span>Crypto.com lays off 12%, or about 180<\/strong>, of its employees as it integrates “enterprise-wide AI,” with CEO Kris Marszalek explaining the jobs that were cut were “roles that do not adapt in our new world.” <\/p>\n<\/div>\n

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MARCH 11, 2026<\/span>Software company Atlassian cuts roughly 10% of its workforce\u20141,600<\/strong> people\u2014in order to \u201cself-fund further investment in AI,\u201d with co-founder Mike Cannon-Brookes saying he “fundamentally believes people and AI create the best outcomes.\u201d <\/p>\n<\/div>\n

\n

FEB. 26, 2026<\/span>Block, billionaire Jack Dorsey’s company, cuts more than 4,000<\/strong> jobs (almost half the company\u2019s staff) in a major restructuring to integrate AI and create smaller, faster teams.<\/p>\n<\/div>\n

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FEB. 25, 2026<\/span>Software company WiseTech Global says it\u2019s eliminating about one-third of employees (2,000<\/strong> jobs) over the next two years to restructure around artificial intelligence.<\/p>\n<\/div>\n

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FEB. 9, 2026 <\/span>It is first reported that Salesforce laid off fewer than 1,000<\/strong> people in marketing, product management, data analytics and the company’s Agentforce AI product at the start of the year, cuts that came about six months after Salesforce CEO and billionaire Marc Benioff blamed AI for axing 4,000 support staff jobs. <\/p>\n<\/div>\n

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JAN. 27, 2026 <\/span>Social media platform Pinterest says it would cut about 15% of its workforce (about 800 <\/strong>people based on a headcount of 5,200 at the end of 2025) to reallocate money toward AI-focused roles, sending its stock tumbling nearly 10%. <\/p>\n<\/div>\n<\/div>\n

Get Forbes Breaking News Text Alerts:<\/em><\/strong> We\u2019re launching text message alerts so you’ll always know the biggest stories shaping the day\u2019s headlines. Text \u201cAlerts\u201d to <\/em>(201) 335-0739<\/em> or sign up <\/em>here<\/em>: <\/em>joinsubtext.com\/forbes.<\/em><\/p>\n

Crucial Quote<\/h2>\n

\u201cIn short: AI is bringing a profound shift in how companies operate, and we\u2019re reshaping Coinbase to lead in this new era,\u201d Armstrong, Coinbase CEO, said. \u201cThis is a new way of working, and we need to leverage AI across every facet of our jobs.\u201d <\/p>\n

<\/div>\n

Big Number<\/h2>\n

49,135. That\u2019s how many layoffs have been blamed on AI so far this year, according to career services firm Challenger, Gray and Christmas. AI was cited for almost 55,000 cuts in 2025.<\/p>\n

Key Background<\/h2>\n

Tech CEOs have recently warned middle management and white collar jobs are likely to be the most vulnerable in the AI renaissance. Billionaire Dario Amodei, founder and CEO of AI giant Anthropic, last year said artificial intelligence could wipe out half of all entry-level white-collar jobs and send unemployment soaring. He accused AI companies and government officials of “sugar-coating” the reality that mass job eliminations are likely coming in technology, finance, law and other sectors. Dorsey and former Sequoia managing partner Roelof Botha last month said they think AI can do much of what middle managers, or about 12% of the workforce, do today. Just Capital, a nonprofit that conducts business-related polling, this week said one-third of the public worries about significant layoffs due to AI displacing roles. More than half of corporate leaders polled said they think hiring will slow for entry-level positions in the coming years, and that remaining jobs will require employees to be more skilled than before. Other analysis suggests tech jobs are much more at risk than roles in other sectors. America\u2019s Census Bureau that companies in tech-heavy areas like San Francisco, Boston and Seattle are using AI at a much higher rate than the rest of the country. <\/p>\n

Contra<\/h2>\n

The National Association of Colleges and Employers says new grads aren\u2019t having as hard of a time finding entry-level jobs as predicted. The association’s annual survey, out in April, shows employers expect to boost new-graduate hires by 5.6% this spring from a year ago. Unemployment among 20- to 24-year-olds with bachelor\u2019s degrees and higher also dropped in March, to 5.3% from 8.9% last fall. Benioff said Salesforce is currently hiring 1,000 new graduates and interns right now to “ride the AI exponential.” \u201cThey said AI would kill entry-level jobs. Meanwhile these grads & interns are building it \u2014 powering Agentforce & Headless360 at Salesforce,\u201d Benioff said. Billionaire OpenAI CEO Sam Altman recently criticized companies for “AI washing” by blaming unrelated layoffs on artificial intelligence. <\/p>\n

Tangent<\/h2>\n

A Chinese court recently said companies aren’t allowed to replace or demote employees just because artificial intelligence systems are now able to do the same jobs. The ruling is similar to another in the country several months ago that decided AI implementation is not a good enough reason to end an employee contract.<\/p>\n

Read more Trump Says He\u2019ll Officially Nominate Blanche As Attorney General<\/a><\/p>\n

Further Reading<\/h2>\n

Forbes<\/span>AI Blamed Heavily For March Layoffs, Report Says<\/span>By Mary Whitfill Roeloffs<\/span><\/small><\/span><\/span>Forbes<\/span>Billionaire Jack Dorsey Thinks AI Will Kill Middle Management<\/span>By Brandon Kochkodin<\/span><\/small><\/span><\/span>Forbes<\/span>Dario Amodei Doubled Down On His AI Jobs Warning. Here\u2019s What\u2019s Different Now<\/span>By Kolawole Samuel Adebayo<\/span><\/small><\/span><\/span><\/div>\n","protected":false},"excerpt":{"rendered":"

AI overtook market and economic conditions as the leading reason companies cited for cutting jobs in May, according to the most recent report from Challenger, Gray and Christmas.<\/p>\n","protected":false},"author":1,"featured_media":365,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[],"class_list":["post-366","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business"],"yoast_head":"\nTech Industry Loses 123,000 Jobs This Year\u2014AI Is The Most Cited Reason For Layoffs - Coast to Coast Movers<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/coasttocoastmoverss.com\/?p=366\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Tech Industry Loses 123,000 Jobs This Year\u2014AI Is The Most Cited Reason For Layoffs - 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