“Treat employees like partners, and they act like partners.”

- Fred Allen

NEXT STEP DESK

Artificial intelligence (AI) became the leading cause of job cuts in the United States last month, according to a monthly analysis by Challenger, Gray & Christmas, an outplacement and executive coaching firm. US-based employers announced 60,620 job cuts in March, a 25% increase from February but a 78% drop compared with the same month last year, the report said. In March, 15,341 cuts, or one in four, were directly attributed to artificial intelligence. Other major reasons included office closings, restructuring, and market or economic conditions.

In the first quarter of 2026, AI has been linked to 27,645 job cuts, representing roughly 13% of all year‑to‑date layoffs. Since 2023, AI has been cited in nearly 100,000 job cut announcements, stated the report. The technology sector recorded the highest number of layoffs in the US in the first quarter, with 52,050 cuts, up 40% from the same period last year.