Outplacement firm Challenger, Gray & Christmas put the number of planned tech-sector eliminations in May at 38,242 — a figure not seen since August 2024. Through the first five months of 2026, no other industry came close to technology's 123,653 announced cuts, a total that represents a 66% increase over the comparable stretch of 2025. Artificial intelligence was cited as the top reason for layoffs across all industries for the third consecutive month.