Latest News Stream - Challenger Job Cuts

US-based employers announced 43,994 job cuts in October 2026, up 2% from 43,281 cuts in September, but down 71% from last year and the lowest for an October month since 2023. It is the eighth month this year in which cuts came in below the same month one year earlier. Food companies led all industries in the amount of cuts (9,677), followed by technology (5,576) and services (5,458). Through October, employers have announced 617,189 job cuts, down 44% year-on-year. It is the lowest year-to-date total through October since 2022, when 243,338 cuts were announced. The tech sector leads all industries with 171,501 cuts up 21% yoy. “This is a low-fire environment. Employers are holding on to the workers they have heading into the holidays, and the hiring they are announcing is largely short-term, seasonal work. Companies want the flexibility to meet holiday demand without adding permanent headcount,” said Andy Challenger, from Challenger, Gray & Christmas.

US-based employers announced 33,429 job cuts in July 2026, the fewest in two years, down 27% from June and 46% compared with the same month last year. AI led all reasons for job cuts for a fifth straight month and was responsible for 10.97K during the month. The tech sector cut the most jobs (9.867K), followed by financial (3.157K), government (2.962K), and services (2.581K). Through July, employers have announced 477,033 job cuts, down 41% from the 806,383 cuts announced in the first seven months of 2025. Technology leads all industries with 149,023 cuts announced through July, followed by Transportation with 41,748, Health Care/Products with 34,426, Services with 23,942, and Government with 20,752. Meanwhile, employers announced plans to hire 16,095 workers in July, the highest July total since 2022. “Hiring has also increased over last year by 25%, so while AI is shifting the labor market, it is not dismantling it,” said Andy Challenger from Challenger, Gray & Christmas.

US-based employers announced 45,849 job cuts in June 2026, the lowest since December 2025, down 53% from May and 4% lower than in the same month last year. The tech sector announced the most cuts (15,503), followed by services (4,296), food producers and manufacturers (3,955) and health care companies (2,761). "The pace of layoffs cooled considerably in June, similar to plans last June, and is typical for summer months. That said, the cuts we are seeing remain concentrated in technology, and AI continues to reshape how companies think about headcount", according to Andy Challenger from Challenger, Gray & Christmas. Through June, employers announced 443,604 job cuts, down 40% from 744,308 cuts announced in the first six months of 2025, led by tech (139,156). Meanwhile, employers announced plans to hire 10,933 workers in June, pushing the year-to-date total to 91,405 workers, 10% more than in the first half of 2025.

US-based employers announced 97,006 job cuts in May 2026, the most since January, compared to 83,387 in April. It is the highest May total since 2020 and also marks the third straight month that cuts have risen. AI was the main reason for the cuts, leading for a third straight month. Technology announced 38,242 job cuts in May, the highest monthly total for the sector since August 2024. Transportation (6,909), services (6,288) and fintech (5,731) followed. “On top of the headline AI story, we’re seeing a sharp rise in cuts tied to acquisitions and mergers and a jump in bankruptcy-related losses, which tells me companies are restructuring aggressively as they reposition for an AI-driven economy,” said Andy Challenger from Challenger, Gray & Christmas. So far this year, employers have announced 397,755 cuts, down 43% from last year, when reductions to the federal workforce drove totals to historic highs. Stripping out that distortion, 2026 is running roughly even with 2024.

US-based employers announced 83,387 job cuts in April 2026, the most in three months, compared to 60,620 in March, but down 21% from the same month last year. April’s total is the third highest for an April month since 2009, with tech (33,361) announcing the most jobs, followed by warehousing (5,743) and services (4,110). Artificial Intelligence led all reasons for job cuts for the second month in a row, with 26% of total cuts. So far this year, employers have announced 300,749 job cuts, down 50% from the same period last year. Tech was the leading contributor (85,411) and AI has been cited for 49,135 cuts this year, and it is the third-leading cause of layoff plans. “Technology companies continue to announce large-scale cuts and are leading all industries in layoff announcements. They are also often citing AI spend and innovation. Regardless of whether individual jobs are being replaced by AI, the money for those roles is,” said Andy Challenger from Challenger, Gray & Christmas.

US-based employers announced 60,620 job cuts in March 2026, above 48,307 in February but well below 275,240 a year earlier. The technology sector recorded by far the highest number of job cuts in March (18,720), followed by pharmaceuticals (5,356), education (5,258), and financial (5,114). Artificial Intelligence (AI) led all reasons for job cuts, with 15,341 announced during the month, 25% of total cuts. Considering Q1, employers announced 217,362 job cuts, the lowest Q1 total since 2022, and down 16% from Q4 2025. “Removing the wave of federal layoffs announced in February and March of last year, job cut announcements in 2026 are closely following the pattern of 2025. Last year it was Government, Retail, and Technology. This year, it’s Technology, Transportation, and Healthcare,” said Andy Challenger, chief revenue officer for Challenger, Gray & Christmas.

US-based employers announced 48,307 job cuts in February 2026, less than 108,435 in January and well below 172,017 a year earlier. Tech announced the most cuts (11,039), as "tech is responding to a number of pressures right now. AI is the big story, but there are also global regulatory concerns, a slowdown in digital advertising driven by tariffs and economic uncertainty, and higher costs to both employ workers and access funding” said said Andy Challenger, Challenger, Gray & Christmas. Education followed with 5,417 job cuts and industrial manufacturing announced 4,109 cuts. “With US involvement in a growing war in Iran, the end of Q1 may bring more layoff plans as companies tighten belts amid uncertainty and higher costs,” Andy Challenger added. Through February, employers announced 156,742 job cuts, the lowest January-to-February total since 2022. The tech sector led job cuts so far this year (33.330), followed by transportation (31,702) and health care/products (19,228).

US-based employers announced 108,435 job cuts in January 2026, the highest level since October and the largest January total since 2009, compared to 33,553 cuts announced in December. “Generally, we see a high number of job cuts in Q1, but this is a high total for January. It means most of these plans were set at the end of 2025, signaling employers are less-than-optimistic about the outlook for 2026,” said Andy Challenger, chief revenue officer for Challenger, Gray & Christmas. Transportation announced the highest number (31,243), primarily due to UPS. The company announced it would cut 30K jobs after severing ties with Amazon. Technology announced 22,291 job cuts, with the bulk coming from Amazon (16K) as it restructures its layers of management. Healthcare companies and health products manufacturers announced 17,107 cuts, the most for the industry since April 2020. Meanwhile, employers announced 5,306 hiring plans, the lowest total for the month since records began in 2009.

US-based employers announced 71,321 job cuts in November 2025, the highest for the month since 2022, compared to 57,727 a year earlier, and marking the eighth time this year job cuts were higher than the corresponding month one year earlier. However, layoffs fell from 153,074 in October which was the highest for an October month since 2003. Most cuts were announced by telecommunication providers (15,139), primarily from Verizon, followed by tech (12,377), food companies, particularly those that handle beef products (6,708), services (5,509), and retailers (3,290). Restructuring was the leading reason for job reductions, totaling 20,217. Through November, employers have announced 1,170,821 job cuts, the most since 2020 and a 54% compared to the first eleven months of 2024. Meanwhile, US employers have announced 9,074 hiring plans in November 2025, the least in three months.

US-based employers announced 153,074 job cuts in October 2025, the highest total for the month since 2003, compared with 54,064 in September. Most layoffs occurred in the warehousing (47,878), tech (33,281), food (10,662) and government (7,883) sectors. “October’s pace of job cutting was much higher than average for the month. Some industries are correcting after the hiring boom of the pandemic, but this comes as AI adoption, softening consumer and corporate spending, and rising costs drive belt-tightening and hiring freezes. Those laid off now are finding it harder to quickly secure new roles, which could further loosen the labor market,” said Andy Challenger, chief revenue officer for Challenger, Gray & Christmas. Through October, employers have announced 1,099,500 job cuts, the highest year-to-date total since the pandemic, and up 44% from the 761,358 cuts announced in all of 2024. So far this year, government announced the most layoffs (307,638), followed by tech (141,159).

US-based employers announced 54,064 job cuts in September 2025, the least in three months, compared to 85,979 in August and down 25.8% yoy. Services cut the most jobs (6,290), followed by the energy sector (5,807), and technology (5,639). Considering Q3, planned layoffs by US employers totaled 202,118, the highest Q3 total since 2020. So far this year, companies have announced 946,426 job cuts, the highest YTD since 2020 and the fifth highest in the 36 years. The government sector has announced the most cuts this year (299,755), of which 289,363 were Federal workers impacted by DOGE. Technology companies followed with 107,878 job cuts. “Right now, we’re dealing with a stagnating labor market, cost increases, and a transformative new technology. With rate cuts on the way, we may see some stabilizing in the job market in Q4, but other factors could keep employers planning layoffs or holding off hiring,” said Andy Challenger, Senior VP of Challenger, Gray & Christmas.

US-based employers announced 62,075 job cuts in July 2025, up 29% from June’s 47,999 and up 140% from 25,885 announced in the same month last year. July’s job cuts were also well above average for this month since the pandemic. “We are seeing the Federal budget cuts implemented by DOGE impact non-profits and healthcare in addition to the government. AI was cited for over 10,000 cuts last month, and tariff concerns have impacted nearly 6,000 jobs this year,” said Andrew Challenger, Senior Vice President and labor expert for Challenger, Gray & Christmas. So far this year, companies have announced 806,383 job cuts, the highest year-to-date since 2020 when 1,847,696 were announced. “DOGE Impact” remains the leading reason for job cut announcements in 2025, cited in 289,679 planned layoffs so far this year.

US-based employers announced 47,999 job cuts in June 2025, the lowest so far this year, compared to 93,816 in May and 48,786 a year earlier. “The bulk of companies cited economic conditions last month. We saw some DOGE activity and have tracked over 2,000 jobs directly attributed to tariffs this year, but for the most part it was a quiet June,” said Andrew Challenger, Senior VP for Challenger, Gray & Christmas. The consumer products sector cut the most jobs (9,500), followed by services (4,463), financial (4,164), health care (4,068), retail (4,063) and government (3,801). Considering Q2, there were 247,256 job cuts, the highest Q2 total since 2020. So far this year, companies have announced 744,308 cuts, the highest year-to-date since 2020. The government sector has cut 288,628 jobs, primarily in the Federal Government, and many of which are in legal limbo. Retail is the sector that has cut the most private-sector jobs this year with 79,865, hit by tariffs, inflation, and uncertainty.

U.S.-based employers announced 105,441 job cuts in April, down sharply by 62% from March’s 275,240 but still 63% higher than in April 2024. It marked the highest total for the month since April 2020, when a record 671,129 layoffs were reported. So far in 2025, employers have announced 602,493 job cuts—the most for this time of year since 2020—mainly in government, due to DOGE-related cost-cutting, as well as in the tech and retail sectors. “Though government cuts are front and center, we saw job reductions across multiple sectors last month,” said Andrew Challenger, Senior Vice President at Challenger, Gray & Christmas. “Companies are generally pointing to economic uncertainty and the adoption of new technologies. Many employers are taking a wait-and-see approach, slowing hiring and scaling back plans as they assess developments in trade, supply chains, and consumer spending.”

US employers announced 275.240K job cuts in March 2025, the highest value since May 2020, compared to 172.017K in February. March 2025 figure is the third-highest monthly total ever recorded. “Job cut announcements were dominated last month by DOGE plans to eliminate positions in the federal government. It would have otherwise been a fairly quiet month for layoffs", said Andrew Challenger, Senior VPfor Challenger, Gray & Christmas. The Government led all sectors in job cuts in March with 216,215, all of which occurred in the federal government. Over the last two months, DOGE actions have been attributed to 280,253 layoff plans of federal workers and contractors impacting 27 agencies, according to Challenger tracking. Another 4,429 job cuts have come from the downstream effect of cutting federal aid or ending contracts, impacting mostly Non-Profits and Health organizations. So far this year, employers have announced 497,052, the highest year-to-date and quarterly total since Q1 2009.