The regular drumbeat of headlines warning that synthetic intelligence is disrupting the workforce has left many staff questioning whether or not their jobs might be subsequent.
New information suggests these issues aren’t going away anytime quickly.
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U.S.-based firms introduced greater than 97,000 deliberate job cuts in Could, marking the best stage for the month for the reason that pandemic-era layoffs of 2020, in accordance with Challenger, Grey & Christmas (1). Employers cited AI as the first motive for 40% of these introduced job cuts.
Nonetheless, some specialists warning in opposition to assuming each layoff attributed to AI is the results of a machine changing a employee.
“Roles involving repetitive duties that primarily require recognition and interpretation of patterns can make the most of AI with higher effectivity,” Chris Hutchins, founder and CEO of Hutchins Knowledge Technique Consultants (2), advised Moneywise.”If AI is assigned blame after job cuts that proceed past these roles, then the underlying trigger is probably going one thing apart from AI.”
In different phrases, whereas firms are more and more pointing to AI as a motive for layoffs, the know-how’s function in job cuts could also be extra difficult than the headlines recommend.
Why the numbers do not inform the entire story
In simply 5 months, employers have attributed extra layoffs to AI than they did in all of final 12 months. The report reveals 87,714 introduced job cuts tied to AI by Could, in comparison with 54,836 all through 2025.
Staff’ issues about AI are widespread. A 2025 Pew Analysis Middle (3) survey discovered that 52% of staff are apprehensive about AI’s future impression on the office, whereas one-third stated they really feel overwhelmed by the know-how.
A number of main tech firms have introduced vital workforce reductions this 12 months whereas concurrently ramping up investments in synthetic intelligence.
Oracle disclosed just lately that it has decreased its workforce by roughly 21,000 staff (4) over the previous 12 months. In the meantime, Google has continued trimming workers (5) by efficiency opinions, buyout packages and reorganizations, with outdoors estimates suggesting between 1,500 and three,000 engineering roles have been eradicated in 2026.
Meta also laid off roughly 8,000 employees earlier this 12 months whereas shifting about 7,000 staff into AI-focused roles, highlighting how some firms are slicing jobs in sure areas whereas persevering with to speculate closely in synthetic intelligence.
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Not each layoff is about AI
Not each layoff tied to AI means a employee is being straight changed by the know-how.
Hutchins, whose work focuses on the healthcare business, says AI’s impression varies considerably from one sector to a different. In healthcare, for instance, persistent staffing shortages imply many AI instruments are being deployed to assist staff do their jobs extra effectively fairly than exchange them altogether.
“Take into account if the corporate claims AI will assist them do extra with much less,” he stated. “If AI will assist them do extra, then they’ll make use of AI to enhance their workforce. In distinction, if they’ll use AI to do much less with extra, then the corporate intends to displace their workforce with AI.”
Regardless of rising issues about AI-related job cuts, U.S. payrolls elevated by 172,000 (6) in Could, greater than double economists’ expectations, with prior months additionally revised greater.
A number of industries continued so as to add staff regardless of issues about AI-driven layoffs. Leisure and hospitality noticed the strongest hiring development in Could, with native authorities and healthcare additionally contributing tens of hundreds of latest jobs.
The impression depends upon the business
Sheldon Arora, CEO of healthcare staffing platform StaffDNA (7), stated staff must be cautious about assuming AI is the only driver behind latest layoffs.
“Present financial situations, altering enterprise priorities and restructuring are large elements,” he advised Moneywise. “AI is a part of this, however not the entire story.”
For staff, meaning the impression of AI could rely much less on nationwide headlines and extra on how the know-how is getting used inside their very own business.
“I do not suppose staff ought to view AI as a job killer,” he stated. “We have seen instances when know-how has modified jobs greater than eradicated them. Staff who study to work alongside AI will seemingly be within the strongest place because the know-how continues to mature.”
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Article Sources
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Challengergray (1); Hutchinsdatastrategy (2); Pewresearch (3); Bbc (4); Finance Yahoo (5); Cnbc (6); Staffdna (7)
This text initially appeared on Moneywise.com underneath the title: US employers announced 97,000 job cuts in May — and AI was blamed for 40% of them
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