“The labor market is being reshaped by technology in real time. AI is now the leading reason companies give for cutting jobs and the primary industry citing it is technology,” said Andy Challenger, chief revenue office at Challenger, Gray and Christmas.”
AI was blamed for 38,579 of the 97,006 job cuts announced across all industries tracked by the company. It accounted for 40% of the cuts observed in May, up from 7% in January.
This year has already seen some major layoffs in technology. In March, HPE slashed 2,500 jobs from its wage bill, while Oracle announced plans to shed an unspecified number of developers. And the cuts keep on coming, just last month, Meta shed 8,000 employees.