AI drove 25% of job cuts in March
Layoffs rose sharply in March, and a quarter of these job losses were due to AI . Job cuts rose about 25% in March reaching 60,620 up from 48,307 cuts the month before. The new data comes from outplacement and executive coaching firm Challenger, Gray & Christmas, who released the report on Thursday. While cuts could be seen across industries, more than 52,000 tech jobs have been cut so far this year with 18,720 happening last month. Reductions took place at major technology companies like Meta , Oracle , Block, and more. However, the report explained that the number was driven up significantly by the workforce reduction at Dell Technologies (DELL), making the total the highest seen since 2023 in the technology sector. “Removing the wave of federal layoffs announced in February and March of last year, job cut announcements in 2026 are closely following the pattern of 2025, said Andy Challenger, chief revenue officer for Challenger, Gray & Christmas in the report. “Last year, it was Government, Retail, and Technology. This year, it’s Technology, Transportation, and Healthcare.” While the new report may fuel worries that AI is taking jobs, the loss in jobs is down about 78% from March 2025, when 275,240 cuts were made. Also, in the last week of March, weekly jobless claims actually approached a two-year low. In a response to the report, Rathin Sinha, a tech founder, CEO and president of America’s Job Exchange, explained the major takeaways in a post on LinkedIn .
In March, layoffs surged by 25%, with a significant portion of these job losses attributed to the rise of artificial intelligence (AI). According to data from outplacement and executive coaching firm Challenger, Gray & Christmas, the total number of job cuts reached 60,620, up from 48,307 in the previous month. The report, released on Thursday, highlights that while job cuts were observed across various industries, the technology sector has been particularly hard hit, with more than 52,000 tech jobs lost so far this year, including 18,720 in March alone.
Major technology companies such as Meta, Oracle, and Block have been among those reducing their workforce. However, the report notes that the significant increase in job cuts in the technology sector was largely driven by Dell Technologies (DELL), which reported a substantial workforce reduction. This has made the total the highest seen in the sector since 2023.
Andy Challenger, chief revenue officer for Challenger, Gray & Christmas, commented that, excluding the wave of federal layoffs announced in February and March of last year, job cut announcements in 2026 are closely following the pattern of 2025. He added that last year, the top sectors for job cuts were Government, Retail, and Technology. This year, however, the order has shifted to Technology, Transportation, and Healthcare.
While the new report may raise concerns about AI's impact on employment, it is important to note that the number of job losses is down by about 78% compared to March 2025, when 275,240 cuts were made. Furthermore, weekly jobless claims in the last week of March approached a two-year low, indicating some stability in the labor market.
In response to the report, Rathin Sinha, a tech founder, CEO, and president of America's Job Exchange, shared his insights on LinkedIn. He emphasized that roles are not disappearing wholesale but are being redefined. In a world where AI can perform certain tasks, Sinha argued that the role of humans is now more about orchestrationāputting things together and ensuring that systems function effectively to deliver a business's unique value proposition. He stressed that this shift requires employees to adapt and focus on strategic thinking and collaboration rather than traditional project management.
The report urges employees to remain proactive in developing new skills and staying updated with technological advancements. As companies continue to leverage AI and other innovations, the ability to work alongside these tools and contribute to the redefined roles will be crucial for career success in the evolving job market.
