America's layoff wave took a chilling new turn in March as artificial intelligence became the top reason companies gave for slashing jobs.
US employers announced 60,620 job cuts in March, a sharp 25 percent jump on the month before, according to Challenger, Gray & Christmas. AI was linked to one in every four of those.
The figures come as household names including Oracle, Amazon, Dell, and Meta axe workers while pouring money into AI, data centers, and cost-cutting drives.
'Companies are shifting budgets toward AI investments at the expense of jobs,' said Andy Challenger, a workplace expert at Challenger, Gray & Christmas.
The pain is no longer confined to tech. Transportation companies have announced 32,241 job cuts so far this year - a staggering 703 percent increase compared to the same period last year and the highest first-quarter total on record for the sector.
Healthcare also suffered more layoffs in the first three months than it ever had before.
But technology remains the epicenter of the bloodbath, with 52,050 job cuts announced so far in 2026 - up 40 percent from the same point last year.
'The actual replacing of roles can be seen in technology companies, where AI can replace coding functions,' Challenger said.
Larry Ellison, founder of Oracle, pictured with Challenger's Oracle Team USA during the 35th America's Cup in Bermuda in 2017. The tech giant is slashing jobs while ramping up AI spending
Andy Challenger, workplace expert at Challenger, Gray & Christmas, warned companies are 'shifting budgets toward AI investments at the expense of jobs'
Oracle - run by the world's sixth richest person, Larry Ellison - has begun cutting workers in recent days as part of a broader restructuring push.
Staff were informed via abrupt early-morning notices as the company ramps up spending on AI infrastructure.
Over the past year, Dell has cut its workforce by around 10 percent, shedding roughly 11,000 roles as it pivots toward higher-margin businesses and AI-linked demand.
Amazon has also cut tens of thousands of corporate roles across multiple rounds, even as it doubles down on AI.
Twitter founder Jack Dorsey's payments company Block has axed 4,000 roles, while Atlassian has slashed around 10 percent of its workforce to refocus on AI.
Meta is also trimming staff in key divisions as it continues to pour tens of billions into its artificial intelligence ambitions.
Gaming giant Epic Games also cut 1,000 jobs last week as it struggles with rising costs and slowing growth.
The auto industry is seeing cuts tick higher, with 3,160 layoffs announced in March alone - taking the total for the year to 7,551, slightly above last year's pace.
Construction layoffs are climbing too, with 1,415 cuts announced so far this year - up sharply from 904 at the same point last year, a worrying sign for the housing and building sectors.
Retail, by contrast, is no longer seeing the same wave of job losses as last year's store closure crisis, but the sector is far from healthy.
Employers have announced 8,894 retail job cuts so far this year, down sharply from more than 57,000 at the same point in 2025, when a string of bankruptcies and shutdowns ripped through the industry.
In total this year, employers have announced 217,362 job cuts, according to the report - down 56 percent compared to the first quarter of 2025.
That sharp drop is partly due to an unusually high level of government layoffs last year.
There are also signs that hiring is picking up - at least on paper.
Companies announced plans to hire 53,867 workers in March, a sharp increase from the previous month. But more than one in five of those roles were seasonal summer jobs.
The Government's official monthly jobs report is released on Friday morning.