Challenger, Gray & Christmas said that layoffs attributed to AI in 2026 have already vastly surpassed the total number for all of 2025. skynesher/Getty Images Challenger said AI was the cited reason for 40% of job cuts in May. In 2026, AI is the leading reason companies cite for layoffs. The outplacement firm also said this isn't "yet the jobpocalypse some predicted." AI may not be a complete disaster for jobs yet, but companies are citing it more than any other reason when announcing layoffs,