Artificial intelligence (AI) was the primary driver of job reductions in the United States last month, as reported in the latest monthly analysis by Challenger, Gray & Christmas, a firm specializing in outplacement and executive coaching services.
Employers based in the US announced a total of 60,620 job cuts in March, marking a 25% increase from February but a significant 78% decrease compared to the same month in the preceding year. The report highlighted that in March, 15,341 job cuts, equating to one in four, were directly linked to artificial intelligence. Other notable reasons for job cuts included office closures (13,931), restructuring (8,726), and adverse market or economic conditions (6,597).
During the first quarter of 2026, AI was implicated in 27,645 job cuts, constituting approximately 13% of all layoffs reported year-to-date. Since 2023, nearly 100,000 job cut announcements have cited AI as a contributing factor.
The technology sector experienced the highest number of layoffs in the initial quarter, with 52,050 job cuts, reflecting a 40% increase compared to the corresponding period in the previous year. Following closely behind was the transportation sector, which saw 32,241 job cuts, a remarkable 703% surge year-on-year, while significant rises in job cuts were also observed in the healthcare and education industries.
Andy Challenger, an expert in workplace dynamics at the firm, emphasized in the report that companies are directing their budgets towards AI investments, leading to job losses. He underscored that AI can potentially replace coding roles in technology firms and advised employees to enhance their skills in AI-related areas.
