AI has become the leading reason cited by US employers for job cuts. In the first five months of 2026, AI-linked layoffs surpassed the total of 2025.
Details. Through the first five months of 2026, there were a reported 87,714 artificial intelligence-linked layoffs in the US, exceeding the 54,836 layoffs accumulated during the whole of 2025. May 2026 marked the third consecutive month that AI led job cuts, accounting for a record-breaking 40% of layoffs – up from just 7% in January.
► Amid those layoffs, Oracle cut 30,000 jobs to save an estimated $8-10 billion. Similarly, Amazon laid off 16,000 workers. Both of them are profitable companies: Oracle’s net income in 2026 stands at $17 billion, while Amazon shows $30 billion in latest records.
Context. In 2026, major tech corporations, including Microsoft, Alphabet (Google), and Amazon, are expected to invest nearly $650 billion in AI, primarily in infrastructure. This represents roughly a 70% surge from $381 billion in 2025, a 164% jump from $246 billion in 2024, and a massive 330% increase compared with $151 billion in 2023.
► Capitalists are deploying AI to cheapen production and undercut competitors, maintaining or expanding their profits in the short term. But by replacing workers, they collectively undermine the basis of profit itself, accelerating the conditions for a broader economic crisis.
► In a capitalist economy, AI is used to intensify labor by making the worker do the tasks which before would be done by many (often specialist) workers. Any remaining specialized workers are left with numerous small tasks – such as editing, reviewing and correcting. Because AI requires less mental effort, workers are also inclined to use it during breaks or downtime, meaning they never disengage from work.