AI hits white-collar workers! U.S. corporate layoffs surge in March, tech sector hardest hit

Artificial intelligence is accelerating the reshaping of the U.S. labor market landscape. According to a report released Thursday by employment placement agency Challenger, Gray & Christmas Inc., U.S. companies announced 60,620 layoffs in March, a surge of more than 25% compared to February. The technology sector led all industries with 18,720 layoffs, up more than 24% year-on-year. AI was listed as the primary reason for layoffs, accounting for a quarter of all industry layoff announcements. The technology sector is particularly notable—AI models are making programming work easier and significantly reducing labor intensity. Tech giants such as Meta Platforms, Oracle, and Block, founded by Jack Dorsey, have initiated layoffs to reallocate resources towards AI development. Tech Industry At the Forefront: Layoffs Hit Two-Year High The technology industry is at the center of this wave of AI-driven layoffs. In the first quarter of this year, tech sector layoffs exceeded 52,000, up 40% year-on-year, marking the highest level for the same period since 2023. In March, 18,720 layoffs were announced, up 24% year-on-year. Andy Challenger, Chief Revenue Officer at Challenger, stated: "Companies are reallocating budgets towards AI investments at the expense of jobs. In technology companies, AI can replace coding work, effectively replacing certain positions. Other industries are testing the limits of this new technology; while it can't fully replace jobs, it is indeed causing unemployment." More layoffs in tech companies are expected by 2026. Reports indicate Dell, Oracle, and Meta have recently been laying off staff. AI As Leading Cause of Layoffs: Pressure Rising on White-collar Jobs The report signals a structural shift: AI has surpassed business closures, restructuring, and market/economic conditions to become the top reason for layoff announcements this month, accounting for a quarter of all industry layoff announcements. Challenger points out that AI's impact on employment is most direct in technical roles, especially those involving coding. For other industries, AI still cannot fully replace positions but is gradually causing marginal job losses. This trend confirms market fears that AI will trigger large-scale turmoil in the white-collar labor market—those engaged in knowledge-intensive work are facing increasing structural pressure. Overall Labor Market Remains Resilient, But Signs of Weak Demand Emerge Despite the rise in layoff announcements, the overall labor market remains relatively stable. The report shows that the number of layoff announcements in March dropped 78% compared to the same month last year, and corporate hiring intentions nearly tripled from last month. However, total hiring plans this year remain below the same period in 2025, reflecting the ongoing softness in labor demand. Meanwhile, according to data released by ADP Research on Wednesday, U.S. companies added 62,000 private sector jobs in March, similar to last month’s growth, maintaining a moderate expansion. Analysts describe the current labor market as "low hiring, low firing," meaning there has not been a large-scale surge in unemployment, but actual hiring intentions have quietly contracted. The trend of accelerated AI investment alongside workforce streamlining may exert sustained potential pressure on the job market. Risk Warning and Disclaimer The market involves risk; investment requires caution. This article does not constitute personal investment advice and does not take into account individual users’ specific investment goals, financial situations, or needs. Users should consider whether any opinions, viewpoints, or conclusions herein are suitable for their specific circumstances. Investments based on this article are at users’ own risk.