About 3,900 people working at U.S.-based companies lost their jobs to artificial intelligence in May alone, according to a report by consultancy Challenger, Gray & Christmas.
According to the report, market and economic conditions are the leading reason for the cuts. Other reasons include cost cutting, restructuring and artificial intelligence. 46 900 people have been laid off this year without companies specifying a reason.
In May alone, U.S. employers laid off 80,089 people. That’s 287% more than in the same month last year, when companies announced 20,712 layoffs. That’s the highest January-to-May job cuts since 2020, when 1,414,828 people were laid off.
The technology sector had the most layoffs this year, followed by the retail sector, the automotive sector and financial firms.
According to Business Insider, this is the first time artificial intelligence has been included as a reason for job cuts. Challenger, Gray & Christmas expects this trend to continue, although some companies are still reluctant to admit they are laying off employees and eliminating positions because of AI.
A recent Goldman Sachs report states that artificial intelligence could replace 300 million full-time jobs globally, which is a quarter of current jobs