AI-Led Layoffs Surge, Tech Workers First in Line

AI-linked layoffs have totaled roughly 87,000 in the first five months of the year, already eclipsing all of 2024’s layoffs, with IBM and Qualcomm among the biggest cutters. The data show cuts are concentrated in high-paid coding roles even as overall payrolls remain solid, and May marked the third straight monthly rise in job cuts with tech accounting for a large share. Starbucks is tying part of tech bonuses to AI usage and expects about $400 million in restructuring, signaling AI-driven workforce optimization is spreading beyond pure tech. While the May jobs report showed payroll gains and a steady unemployment rate, analysts caution against reading a recession from a single Challenger Score and recommend watching June data for confirmation.