Artificial intelligence (AI) emerged as the primary reason for job reductions in the United States last month, as reported in the latest analysis by Challenger, Gray & Christmas, a firm specializing in outplacement and executive coaching.
In March, US-based employers announced a total of 60,620 job cuts, marking a 25% increase from February but a significant 78% decline compared to the same period last year. Among these cuts, 15,341 were directly linked to artificial intelligence, accounting for one in every four job reductions. Other notable causes included office closures (13,931), restructuring (8,726), and market or economic factors (6,597).
AI has been implicated in 27,645 job layoffs in the first quarter of 2026, constituting about 13% of all layoffs so far this year. Since 2023, close to 100,000 job cuts have been associated with AI in announcements made by various companies.
The technology industry witnessed the highest number of job cuts in the initial quarter, with a total of 52,050 layoffs, reflecting a 40% surge compared to the same period last year. Following closely, the transportation sector saw 32,241 job cuts, marking a substantial 703% increase year-on-year, while healthcare and education sectors also experienced notable spikes.
Andy Challenger, an expert on workplace dynamics at the firm, highlighted in the report that companies are channeling their resources towards AI investments, leading to a reduction in jobs. He emphasized that AI has the capacity to automate coding functions within tech companies and encouraged workers to acquire skills related to artificial intelligence.