US tech firms cut 38,000 jobs in May, AI blamed

Tech layoffs in the US are getting bigger. Challenger, Gray & Christmas says tech firms cut 38,242 jobs in May, the most in any industry and the highest monthly number in two years. Overall, about 97,000 jobs were cut across all industries in May, up from 83,387 in April. Transportation cut 6,909 jobs and services cut 6,268. AI has been the top reason for layoffs for three months in a row. Andy Challenger says AI is now the number one excuse companies give for firing people. But big tech is spending huge on AI: Google, Amazon, Microsoft, and Meta plan to spend $725 billion on AI by 2026, up 77% from now. Layoffs and AI investment are happening at the same time, making people wonder about changes in the job market.