Source: Sharecast
It also marked the third consecutive monthly increase and the largest May figure since 2020, with artificial intelligence cited as the leading cause of layoffs for a third straight month.
The tech sector accounted for 38,242 cuts, its biggest monthly tally since August 2024, while transportation cut 6,909 jobs, services made 6,288 layoffs, and fintech shed 5,731 jobs.
However, despite the recent acceleration, year‑to‑date cuts stand at 397,755, down 43% on the same period last year, when reductions in the federal workforce pushed totals to historic highs. Excluding that distortion, 2026's total year-to-date figure was tracking broadly in line with 2024.
"On top of the headline AI story, we're seeing a sharp rise in cuts tied to acquisitions and mergers and a jump in bankruptcy-related losses, which tells me companies are restructuring aggressively as they reposition for an AI-driven economy," said Challenger, Gray & Christmas' Andy Challenger.
Reporting by Iain Gilbert at Sharecast.com