AI Drives Record US Tech Layoffs as Kenya Private Sector Contracts

Artificial intelligence has become the primary driver of corporate downsizing in the United States throughout 2026. According to data from Challenger, Gray & Christmas, AI-related layoffs in the first five months of the year reached 87,714, surpassing the combined totals for 2024 and 2025. In May 2026, U.S. employers announced over 97,000 total job cuts, the highest May total since 2020. AI was cited as the reason for 38,579 of those reductions, representing nearly 40% of all private-sector cuts for the month.

The technology sector faced the steepest decline, reporting 38,242 cuts in May alone. Year-to-date layoffs in tech have increased 66%, totaling 123,000 positions, with companies such as Meta and Cisco implementing reductions to shift spending toward AI. While U.S. jobless claims rose to 225,000, the trend primarily impacted white-collar roles.

Simultaneously, Kenya experienced its first private-sector job losses in 15 months. Economic contraction was evidenced by a Purchasing Managers' Index of 46.6, as businesses struggled with inflation reaching 6.7%. These declines were exacerbated by rising operating costs, weakening customer demand, and disruptions caused by nationwide transportation protests.