Firms on AI spending spree: US tech companies cut most jobs in nearly 2 years
US technology companies in May announced the most job cuts in nearly two years as they ramp up spending on AI.
The tech sector said last month it planned to eliminate 38,242 positions, the most since August 2024, according to data from outplacement firm Challenger, Gray & Christmas. So far this year, the industry has announced 123,653 cuts, up more than 65% from the same period in 2025.
Total private-sector job cut announcements, meanwhile, were down 7% over the past five months versus the same period a year earlier, reinforcing the picture of an ongoing “low-hire, low-fire” environment in most industries.
