Over 100 US tech companies laid off more than 115,000 employees in the first quarter of 2026, the highest quarterly job cut total since early 2023 [1, 2, 3, 4, 5]. Meta cut roughly 8,000 positions, including in Singapore, as part of these reductions [5].
AI technologies were cited as the primary cause of the layoffs, even as companies poured billions into AI infrastructure [1, 2, 5, 6]. Andy Challenger, executive vice president at Challenger, Gray & Christmas, said, "AI currently is the main excuse for layoffs and is reshaping the labor market in real-time, though it is not yet the 'end of work' some have predicted" [6].
In response to the layoffs, new AI-focused start-ups are emerging. Xiaoyin Qu, founder of HeyBoss.AI, used an LED truck parked at Meta’s headquarters to promote entrepreneurship among laid-off Meta employees. She said, "We rented an LED truck and drove inside Meta’s headquarters. Fired? Start a company before lunch" [1]. Her company builds AI tools that help individuals run "one-person companies" or small teams, with AI executives handling many tasks [1, 2, 5].
HeyBoss.AI raised $3.5 million in seed funding in 2025, backed by the OpenAI Startup Fund, and appointed an AI CEO named Astra that same year [1, 2, 5]. The start-up has already attracted dozens of contacts from laid-off Meta workers [1, 2, 5].
Public opinion in the US remains skeptical of AI’s benefits. A University of Pennsylvania survey from February 2026 revealed only 17% of Americans believe AI will have a positive impact over the next decade [3, 4]. Matt Levendusky, a professor at the university, noted, "Concern about AI is bipartisan, and the public is waiting to see what politicians will do" [3]. A Reuters/Ipsos poll found roughly half of Americans fear someone in their household could lose work due to AI, with Democrats expressing greater concern than Republicans [7].
Labour unions including AFL-CIO and the Communications Workers of America are demanding transparency and protections against AI-driven layoffs and automated HR decisions [3, 4]. Across party lines, nearly two-thirds of Americans say the government has done too little to regulate AI [3, 4].
US companies announced 97,006 layoffs in May 2026, a 16% rise from April, with AI responsible for 38,579 of those cuts, representing 40% of the total [6]. Tech sector layoffs reached 123,653 jobs so far in 2026, a 66% increase over 2025 and the highest of any industry [6]. Other sectors also faced sharp increases, with transportation layoffs up 449% year-on-year [6]. Corporate bankruptcies and mergers also contributed to job losses [6].
President Donald Trump is preparing to meet with leaders of major AI firms at the White House this month to discuss possible government equity stakes in AI companies as part of a policy response [3, 4].
