US technology firms cut the most jobs in 21 months last month, citing the adoption of artificial intelligence (AI) as the reason.
US tech firms announced 8,242 job cuts last month, employment information firm Challenger, Gray & Christmas said in a report Wednesday. According to Challenger, Gray & Christmas, that marks the highest figure since August 2024.
However, the scale of layoffs at all US companies in the first half of this year decreased somewhat from the same period a year earlier. Challenger, Gray & Christmas calculated that layoff announcements by all US employers from January to May this year fell 7% from the same period last year. "The labor market is being reshaped in real time by technology," Challenger, Gray & Christmas noted. "AI has become the reason companies most frequently cite for layoffs, and the technology sector in particular points to it as the main reason."
Regarding the US labor market, the Federal Reserve said in its June economic conditions report (the Beige Book) released Tuesday that "in the employment sector, a 'low-hiring, low-firing' trend continued in most regions, while hiring was notable in the manufacturing sector."
