AI drives tech sector to cut jobs by the most since 2023

US-based employers announced 97,006 job cuts in May, up 16% from the 83,387 job cuts recorded in April. The figure is also up 3% from the 93,816 announced in the same month last year, marking the highest May total since 2020.Of note, this also marks the third straight month that job cuts have risen. So, that is definitely something to be wary about.While the year-to-date figure (397,755 job cuts) is still 43% down compared to last year's tally (696,309 job cuts), do be reminded that reductions to the federal workforce drove the 2025 total to historic highs.Looking to the May month this year, the tech sector was the main industry that saw the most layoffs. Of note, the industry announced 38,242 job cuts in May - the highest monthly total since August 2024. Firms are reporting that AI is the main reason for the job cuts."The labour market is being reshaped by technology in real time. AI is now the leading reason companies give for cutting jobs and the primary industry citing it is Technology. Technology, already the year’s biggest job cutter, saw its steepest month of cuts since early 2023, even as it remains the sector with the most hiring plans this year.AI isn’t yet the jobpocalypse some predicted. Like spreadsheets and email before it, the technology will ultimately make workers more productive, but our data shows companies are already acting on it, citing AI for more cuts than any other reason. The open question isn’t whether AI changes the workforce, but how fast." This article was written by Justin Low at investinglive.com.