The introduction of artificial intelligence (AI) agents is accelerating layoffs in the United States at an unprecedented rate. In South Korea, youth employment in the IT sector is plummeting, and there are forecasts of restructuring pressures extending into manufacturing.
According to data from the U.S. restructuring firm Challenger, Gray & Christmas, a total of 87,714 layoffs were attributed to AI from January to May 2026. This figure has already surpassed the combined total of 67,578 layoffs from 2024 (12,742) and 2025 (54,836) within just five months. AI-related layoffs account for nearly 65% of all tech sector layoffs, which totaled 134,603 as of June 7.
The pace of these layoffs is alarming. In May alone, over 97,000 layoffs were announced, with 40% citing AI as the reason. This marks a significant increase from just 7% in January. On average, 852 people lost their jobs daily due to AI-related reasons. TruUp predicts that tech layoffs could reach 370,000 by the end of the year.
While companies previously engaged in what was termed 'AI-washing'—using AI as a justification for restructuring—this year has seen a rise in actual cases where office workers are being directly replaced by AI agents.
The situation in South Korea is also concerning. According to employment trends from February, the number of employed individuals in their 20s decreased by 163,000 compared to the same month last year, marking the lowest level since statistics began in 1982. The decline is particularly pronounced in AI-related sectors, with 105,000 jobs lost in professional, scientific, and technical services, and 42,000 in information and communication sectors. The impact on the job market is significant, given that these are high-quality positions for young workers.
The Bank of Korea's report on 'AI Expansion and Youth Employment Decline' indicates that sectors with high exposure to AI are experiencing substantial reductions in youth employment. In small and medium-sized IT firms, the hiring rate for experienced workers has risen from 41.9% (2019-2022) to 46.1% (2023-2025), narrowing opportunities for new graduates.
The manufacturing sector is also beginning to feel the effects. A report from the Korea Employment Information Service and the Korea Industrial Technology Promotion Agency forecasts a 0.9% decrease (approximately 3,000 jobs) in employment across ten major manufacturing sectors in the first half of this year compared to the same period last year. The semiconductor industry is the only sector expected to see job growth due to the ongoing AI boom.
The Korea Employment Information Service predicts that the employment growth rate will stagnate at an average of 0.0% over the next decade. The retail sector is expected to lose 431,000 jobs by 2034, while traditional manufacturing sectors like automotive and metal processing will also see job reductions due to AI-driven automation. Projections suggest that the overall number of employed individuals may begin to decline starting in 2030, particularly as Hyundai Motor Company has announced plans to integrate Boston Dynamics' Atlas humanoid robots into its production processes by 2028, signaling the entry of physical AI into manufacturing.
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.