Challenger’s report reveals that artificial intelligence was cited as the reason for 7,624 job cuts in the US in January 2026, comprising 7% of the month’s total layoffs. This is part of a broader trend where U.S.-based employers announced 108,435 job cuts that month, marking a 118% increase compared to January of the previous year, and a 205% rise from December 2025. The data reflects a pattern in which the adoption of AI technologies across various sectors is driving significant changes in employment, as companies leverage technological advancements to enhance efficiency, often leading to workforce restructuring.
Challenger reports AI cited for 7,624 US job cuts in January 2026
