US Tech Sector Announces Most Job Cuts in Nearly Two Years - Bloomberg.com

US technology companies announced 38,242 planned job cuts in May 2026, the highest monthly total since August 2024, according to data reported by Bloomberg. The cuts are occurring as companies increase their spending on artificial intelligence technologies. This marks a significant resurgence in tech layoffs after a period of relative stability.

The figure represents a sharp increase from previous months, though specific comparisons were not provided in the report. The announcement comes amid a broader trend of tech firms reallocating resources toward AI development and deployment. Some companies have cited a shift in priorities towards AI as a reason for workforce reductions.

The May layoff total underscores the ongoing restructuring within the technology sector, where investment in AI capabilities is reshaping job markets. Analysts have noted that similar patterns emerged during previous waves of automation, though the pace of change this cycle appears accelerated. The impact on affected workers and the broader economy remains a subject of ongoing study.