There was a significant rise in job cuts across the United States in May 2026. New data from an employment firm shows that layoffs increased by 16% compared to April, and more than 38,000 technology workers lost their jobs in one month. This means job cuts in the technology sector are growing faster after appearing stable earlier in the year.

Most companies now say the main reason for downsizing is the use of artificial intelligence. Many jobs in software, data management, and customer support were removed because firms are using more automated systems. This helps companies save costs and work more efficiently.

The change shows that companies are investing more in digital technology than in people. Experts say this move towards automation is likely to continue. There is also more pressure for workers to gain new skills as the use of AI increases.