Artificial intelligence (AI) became the leading cause of job cuts in the United States last month, according to a monthly analysis by Challenger, Gray & Christmas, an outplacement and executive coaching firm.
US-based employers announced 60,620 job cuts in March, a 25% increase from February but a 78% drop compared with the same month last year, the report said. In March, 15,341 cuts – or one in four – were directly attributed to artificial intelligence. Other major reasons included office closings (13,931), restructuring (8,726) and market or economic conditions (6,597).
In the first quarter of 2026, AI has been linked to 27,645 job cuts, representing roughly 13% of all year‑to‑date layoffs. Since 2023, AI has been cited in nearly 100,000 job cut announcements.
The technology sector recorded the highest number of layoffs in the first quarter, with 52,050 cuts, up 40% from the same period last year. Transportation followed with 32,241 cuts, a 703% increase year‑on‑year, while healthcare and education also saw significant rises.
Andy Challenger, a workplace expert at the firm, said in the report that companies are reallocating budgets toward AI investments at the expense of jobs. He noted that AI can replace coding functions in technology companies and urged workers to develop AI‑related skills.