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 attributed to the rise of AI. According to data from outplacement and executive coaching firm Challenger, Gray & Christmas, the number of job cuts reached 60,620, up from 48,307 in the previous month. The report, released on Thursday, highlights that while job losses were widespread across industries, the technology sector bore the brunt of the reductions. Over 52,000 tech jobs have been cut this year, with 18,720 of those occurring in March alone.
Prominent technology companies like Meta, Oracle, and Block have been among those making cuts. However, the report notes that the spike in job losses was largely driven by Dell Technologies (DELL), which announced a substantial workforce reduction. This has made the total the highest seen in the technology sector since 2023.
Andy Challenger, chief revenue officer for Challenger, Gray & Christmas, commented that, excluding the federal layoffs announced in February and March of last year, job cut announcements in 2026 are closely following the pattern of 2025. He pointed out 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 heighten concerns about AI displacing workers, it's important to note that the number of job losses is down by about 78% compared to March 2025, when 275,240 cuts were made. Additionally, weekly jobless claims in the last week of March approached a two-year low, offering some reassurance for the labor market.
In response to the report, Rathin Sinha, a tech founder, CEO, and president of America's Job Exchange, shared his insights in a LinkedIn post. He emphasized that roles are not disappearing entirely but are instead being redefined. In a world where AI can perform tasks, Sinha argued that the role of humans is shifting towards orchestrationāputting things together and enabling systems to deliver on a business's unique value proposition. This is not just about project management but about system thinking and collaboration.
As companies continue to lean heavily on AI, the report urges employees to focus on developing skills that complement AI, such as critical thinking, creativity, and adaptability. This will help them stay relevant in a rapidly evolving job market, where technology is reshaping the landscape but also creating new opportunities for those who can adapt and thrive in a collaborative environment with AI.
