Layoffs influenced more than 37,000 employees in the first 10 days of May 2026, as companies across technology, finance, aviation, media, and cybersecurity announced major workforce reductions amid restructuring and the growing adoption of artificial intelligence. The first 10 days of May 2026 offered one of the clearest signs yet that the American labor market is entering a new phase shaped by automation, artificial intelligence, and aggressive corporate restructuring.
Many of the cuts were tied to AI-driven restructuring, cost reduction plans, or operational overhauls, with several firms citing efficiency improvements and changing market conditions.
Here are the biggest layoffs affecting U.S. employees in the first 10 days of May 2026:
1. Spirit Airlines
Jobs cut: 14,000
Workforce affected: 100%
Sector: Aviation
Reason: Collapse and shutdown operations
Spirit Airlines accounted for the largest workforce reduction of the month after ceasing operations entirely, impacting roughly 14,000 employees nationwide. Spirit Airlines shut down operations after prolonged financial distress, rising debt, intense competition, and weakened demand for ultra-low-cost travel. The collapse followed failed restructuring efforts and mounting operational pressures, leaving roughly 14,000 employees without jobs as the airline ceased flights and entered liquidation-related proceedings across multiple U.S. markets.
2. Kyndryl
Estimated jobs cut: 10,000
Workforce affected: 13.7%
Sector: IT services
Reason: Workforce rebalancing and restructuring
Kyndryl disclosed a major restructuring tied to operational efficiency goals, though the company did not officially confirm the precise number of layoffs.Kyndryl’s layoffs were tied to a broad restructuring strategy focused on automation, cloud migration, and cost efficiency. The company has been shifting away from legacy infrastructure services while investing more heavily in artificial intelligence and higher-margin enterprise solutions, reducing workforce needs in traditional support and operational roles.
3. PayPal
Jobs cut: 4,760
Workforce affected: 20%
Sector: Fintech
Reason: AI-driven restructuring
PayPal’s cuts reflected a broader trend among technology companies reorganizing around automation and AI-powered workflows.PayPal reduced jobs as part of an AI-focused operational overhaul aimed at streamlining internal processes and improving profitability. Executives cited slowing growth in digital payments, pressure from investors to reduce costs, and increasing automation across customer support, compliance, and backend financial operations as major drivers behind the cuts.
4. Cloudflare
Jobs cut: 1,100
Workforce affected: About 20%
Sector: Cybersecurity / Cloud computing
Reason: AI-first restructuring
Cloudflare said it was redesigning workflows around “agentic AI,” even as the company reported strong revenue growth. Cloudflare’s layoffs reflected a transition toward what executives described as an “AI-first” business structure. The company sought to reduce overlapping roles and automate workflows while continuing investments in cybersecurity and AI infrastructure. Management said the restructuring was intended to improve long-term efficiency despite continued revenue growth and strong enterprise demand.
READ: Air India to delay salary hikes, CEO assures no layoffs (May 9, 2026)
5. Fidelity Investments
Jobs cut: 800
Workforce affected: 1%
Sector: Finance
Fidelity cut jobs amid cost-control measures and changing investment market conditions. The company has faced pressure to modernize operations, automate client servicing functions, and adapt to slower retail investment activity. The layoffs were part of a broader effort to maintain margins while continuing investment in digital financial products and platforms.
6. Coinbase
Jobs cut: 700
Workforce affected: 14%
Sector: Crypto / Fintech
Reason: AI restructuring and market volatility
Coinbase said the layoffs were part of a broader effort to become a more “AI-native” company.Coinbase said its layoffs were linked to restructuring efforts focused on artificial intelligence and operational efficiency. The crypto exchange has faced continued market volatility, regulatory uncertainty, and investor pressure to improve profitability. Executives indicated future hiring would prioritize AI talent while reducing management layers and redundant operational positions.
7. Freshworks
Jobs cut: 500
Workforce affected: 11.1%
Sector: SaaS / Software
Reason: AI-related restructuring
Freshworks announced layoffs while reorganizing around artificial intelligence products and customer service automation. The company said the cuts were intended to streamline operations and focus resources on AI-powered enterprise software. Slower software spending and increased competition in the SaaS sector also contributed to the restructuring decision.
8. Verizon
Jobs cut: 500
Sector: Telecommunications
Verizon’s job cuts were tied to ongoing efforts to reduce operational expenses and improve efficiency in a highly competitive telecom market. The company has continued shifting toward automation, digital customer support, and network modernization while facing pressure from slowing subscriber growth and expensive infrastructure investments.
9. Ticketmaster
Jobs cut: 350
Workforce affected: 8%
Sector: Entertainment / Ticketing
Ticketmaster reduced its workforce amid restructuring efforts within the live entertainment industry. The company has focused on consolidating operations and investing in automated ticketing technologies following slower post-pandemic growth in some event segments and increased regulatory scrutiny surrounding pricing and market dominance concerns.
10. Cboe Global Markets
Jobs cut: 332
Workforce affected: 20%
Sector: Financial markets
Cboe’s layoffs were part of a restructuring aimed at simplifying operations and improving profitability. The exchange operator has increasingly invested in automated trading systems, data services, and technology integration following acquisitions, reducing the need for certain operational and administrative roles across its workforce.
READ: Oracle layoffs 2026: 30,000 jobs cut, H-1B visa holders face race against time (April 2, 2026)
11. Commerzbank
Jobs cut: 300
Sector: Banking
Commerzbank announced job reductions as part of a broader European banking restructuring strategy focused on digital transformation and cost reduction. The bank has been closing branches, automating services, and responding to profitability pressures tied to economic uncertainty and evolving customer banking habits across global financial markets.
12. Arctic Wolf
Jobs cut: 250
Workforce affected: 8.3%
Sector: Cybersecurity
Arctic Wolf cut jobs despite continued cybersecurity demand, citing the need to streamline operations and focus investments on AI-driven security platforms. The company joined a wider trend among tech firms seeking profitability and operational efficiency after years of rapid expansion and aggressive hiring during earlier growth cycles.
13. Upwork
Jobs cut: 145
Workforce affected: 24.2%
Sector: Gig economy / Tech
Upwork’s layoffs followed slowing demand in parts of the freelance and gig economy sector. The company has been restructuring to focus on AI-related freelance opportunities and enterprise clients while reducing expenses tied to weaker hiring activity among startups and small businesses facing tighter economic conditions.
READ: Cloudflare cuts 1,100 jobs as CEO calls layoffs ‘right decision’ (May 8, 2026)
The layoffs highlight how AI adoption, slowing demand, and corporate restructuring are reshaping the U.S. labor market in 2026. Technology and finance companies accounted for the largest share of cuts, while aviation saw the single biggest collapse through Spirit Airlines’ shutdown.
While many firms framed the layoffs as necessary for survival, restructuring, or AI transition, labor experts say companies had several potential alternatives that may have reduced the scale of job losses.
Many companies may have limited layoffs by freezing hiring, reducing executive compensation, or relying on natural attrition. This strategy has previously been used during economic slowdowns to stabilize costs without large-scale workforce disruption.
Some economists argue that temporary salary adjustments or reduced-hour models can help companies preserve jobs during periods of restructuring, particularly in sectors experiencing short-term revenue pressure rather than structural collapse.
For workers, the challenge is no longer simply surviving economic downturns, but adapting to a labor market where many traditional white-collar and operational roles are rapidly evolving. For policymakers and businesses, the growing debate centers on whether innovation and efficiency can advance without triggering deeper instability across the workforce.
The layoffs also raise broader questions about the future of employment in the United States: whether AI will ultimately create enough new opportunities to offset displacement, or whether the economy is entering a period of prolonged workforce disruption that could reshape entire industries over the next decade.