Challenger Report: May Job Cuts Rise 16% from April; Highest May Total Since 2020
Source: Challenger, Gray & Christmas
Challenger Report: May Job Cuts Rise 16% from April; Highest May Total Since 2020
AI DRIVES MAY CUTS TO 97,006, HIGHEST MAY TOTAL SINCE 2020; TECH CUTS HIGHEST SINCE 2023; AI LEADS REASONS FOR THIRD MONTH IN A ROW
U.S.-based employers announced 97,006 job cuts in May, up 16% from the 83,387 job cuts recorded in April, and up 3% from the 93,816 announced in the same month last year, according to a report released Thursday from global outplacement and executive coaching firm Challenger, Gray & Christmas.
May’s total is the highest for the month since 2020, when 397,016 job cuts were recorded in May at the height of the pandemic. It also marks the third straight month that cuts have risen, climbing from 48,307 in February to 97,006 in May.
So far this year, employers have announced 397,755 cuts, down 43% from the 696,309 announced through the first five months of 2025, when reductions to the federal workforce drove totals to historic highs. Stripping out that distortion, 2026 is running roughly even with 2024, when 385,859 cuts were announced through May.
“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 Andy Challenger, labor and workplace expert and chief revenue officer of Challenger, Gray & Christmas.
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Read more: https://www.challengergray.com/blog/challenger-report-may-job-cuts-rise-16-from-april-highest-may-total-since-2020/
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