Artificial intelligence topped all the reasons employers cited for job cuts in the United States in March, accounting for 15,341 of the 60,620 layoffs announced for the month. according to outplacement firm Challenger, Gray & Christmas.
This represents 25% of all reductions for the month, compared to around 10% in February.
Since Challenger began tracking AI as a reason in 2023, employers have now cited it in 99,470 layoff announcements, or 3.5% of all reductions during that period.
What the numbers show
Total U.S. job losses rose 25% between February and March, but are down 78% from March 2025, when a wave of federal layoffs brought that month’s total to 275,240.
For the entire first quarter, employers announced 217,362 job cuts. This is the lowest first quarter total since 2022.
AI ranks fifth among all reasons cited year-to-date, behind market and economic conditions, restructurings, closures and contract losses. But its share is increasing. Over the entire year 2025, AI represented 5% of the reductions cited. In the first quarter of 2026, it was 13%.
These are reasons given by the employer and not independently verified causes. Companies can cite AI when reductions involve broader cost restructuring.
The technology sector is hardest hit
Tech companies announced 18,720 job cuts in March alone, bringing the total for 2026 to 52,050. That’s up 40% from the 37,097 tech reductions announced during the same period last year. This is the highest annual total for the sector since 2023.
Andy Challenger, the company’s chief revenue officer, said this trend goes beyond traditional cost cutting.
“Companies are shifting budgets toward investments in AI at the expense of employment. Real role replacement can be seen in tech companies, where AI can replace coding roles. Other industries are testing the limits of this new technology, and while it can’t completely replace jobs, it costs jobs.”
Dell is responsible for a large portion of March’s technology cuts, based on its latest annual report, according to the report. Oracle reportedly began making layoffs late last month, but has not released a total figure. Meta is also cutting positions in its Reality Labs division as it redirects resources to AI.
Other sectors
Transport companies announced the second largest reduction since the start of the year, with 32,241, up 703% from the same period in 2025. This is the highest total ever recorded for the sector in the first quarter.
The healthcare sector announced 23,520 layoffs in the first quarter, also a record for the sector.
The news sector, considered a subset of media, announced 639 job cuts in the first quarter of 2026, up 12% from 573 in the same period last year.
Why it matters
Challenger’s data puts company-level numbers below what headcount projections have estimated.
SAY recently covered the Tufts American AI Jobs Risk Index, which ranks computer programmers at 55% vulnerable and web developers at 46%.
See a brief summary of this report below:
Challenger’s report separately shows that cuts in the tech sector are at their highest level since 2023 and that AI is the top reason cited by employers for overall layoffs in March. The two data sets measure different things, but they point in the same direction.
For those working in research, content and digital marketing, Challenger data adds another reference point to follow alongside academic projections and company earnings calls.
Looking to the future
Challenger said it expects more layoffs in the tech sector in 2026 as companies continue to shift their budgets toward AI.
“One thing that is clear is that AI is changing work and the workforce. Workers will need to be more strategic as they lead AI-based agents that handle increasingly complex tasks.”
Challenger, Gray & Christmas publish updated cutting data monthly.
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