US Tech Companies Lay Off Thousands Citing AI

U.S. technology firms are accelerating workforce reductions by citing artificial‑intelligence‑driven restructuring. Data from Challenger, Gray & Christmas show that about 40% of layoffs announced in May were justified by AI, up from 7% in January and climbing each month. The sector’s layoffs in the first five months rose 66% year‑over‑year to a total of 123,653 jobs.

Major companies disclosed specific cuts: Oracle reduced its full‑time staff by 21,000, bringing headcount to 141,000; GitLab announced a 14% reduction, eliminating 350 jobs across 22 countries; Meta plans to eliminate roughly 8,000 positions while moving about 7,000 employees into AI‑focused roles. Other firms also cited AI: Intuit will cut 17% of its workforce, Cisco about 4,000 jobs, Cloudflare more than 1,100 roles, and Coinbase about 14% of staff.

Executives emphasize that AI adoption is reshaping operations and productivity expectations, prompting firms to streamline while reallocating resources toward AI initiatives.