Tech Layoffs Hit 5-Year High; Dune, Crypto.com Cut Staff

Technology companies announced 123,653 job cuts through the first five months of 2026, a 66% increase from the same period last year, according to Challenger, Gray & Christmas. The information sector's layoffs and discharges rate reached 2.2% in the latest JOLTS data, a multi-year high.

AI was the leading reason cited for staff reductions for three consecutive months through May. In May alone, employers attributed 38,579 cuts to artificial intelligence, or 40% of all layoffs that month, a record share.

The 123,653 cuts through May already rival full-year totals from several recent years. The pace puts the tech sector on track to surpass the layoff cycles of early 2023, when Meta, Amazon, and Google made deep cuts.

Crypto analytics platform Dune cut 25% of its workforce, citing investments in AI tools. Crypto.com reduced headcount by about 12% while integrating AI into operations, the companies said.

The 2.2% layoff rate in the information sector reflects actual separations, not just announcements, according to JOLTS. Revenues at major tech firms remain strong, with companies posting solid earnings and spending on AI infrastructure while cutting workers.