American technology companies continue to announce increasing numbers of layoffs, with AI as the main driver.

The number of layoffs announced by technology companies continued to increase in March, ranking at the forefront of layoff plans announced in various industries in the United States, indicating that investments in artificial intelligence are driving employers to streamline their workforce. Data released by Challenger, Gray & Christmas shows that the technology industry announced layoffs of 18,720 people, a year-on-year increase of over 24%. The number of layoffs announced by this industry so far this year has exceeded 52,000, reaching the highest level for the first quarter since 2023. Overall, U.S. employers announced layoffs of 60,620 people in March, an increase of over 25% from February. Among all industries, layoffs caused by artificial intelligence accounted for a quarter of all layoff plans. "Companies are redirecting their budgets towards AI investments, at the cost of sacrificing jobs," said Andy Challenger, Chief Revenue Officer of the company, in a statement. "We can see positions being replaced in technology companies, with artificial intelligence able to replace programming functions. Other industries are pushing the limits in testing this new technology, and while it may not completely replace jobs, it is reducing employment opportunities."