US job cuts plunge 40%: Why AI is still putting workers on the chopping block
US employers announced 443,604 job cuts in the first half of 2026, down nearly 40% from the same period last year. Artificial intelligence emerged as the leading reason for job eliminations, accounting for 101,743 cuts, according to a report by outplacement firm Challenger, Gray & Christmas.
The decline in layoffs does not necessarily indicate a stronger job market. The first half of 2025 recorded 744,308 job cuts, the second-highest first-half total since 2020, largely due to government job reductions. The comparable figure for 2026 remains the second-highest first-half total since 2020, showing continued pressure on the US workforce.
