Tech Sector Slashes 38,000 Jobs in May as AI Spending Surges

US technology companies announced 38,242 job cuts in May, the highest monthly total since August 2024, according to outplacement firm Challenger, Gray & Christmas Inc. This marks a significant escalation in layoffs as firms reallocate resources toward artificial intelligence.

So far in 2025, the tech sector has announced 123,653 job cuts — a 65% increase compared to the same period last year. The trend highlights a growing divide between traditional tech roles and the AI-driven transformation reshaping the industry.