US employers announced 573,195 job cuts in the first nine months of 2026, down 39% from 946,426 a year earlier, according to outplacement firm Challenger, Gray and Christmas [1]. September's 43,281 announced cuts were the lowest for that month since 2022 [1]. The decline hides a shift: technology companies announced 165,925 cuts through September, up 54% and 29% of the total, and artificial intelligence was the most-cited reason for cuts in 2026, named in 120,136 announcements [1].
How many layoffs have been announced in 2026?
Challenger counts layoff plans that employers announce publicly or file in government notices. Announcements are not the same as actual job losses, which take place over months and may be partly offset by hiring, but they are an early signal of where companies are cutting [1].
| Month | 2026 announced cuts | 2025 announced cuts |
|---|---|---|
| January | 108,435 | 49,795 |
| February | 48,307 | 172,017 |
| March | 60,620 | 275,240 |
| April | 83,387 | 105,441 |
| May | 97,006 | 93,816 |
| June | 45,849 | 47,999 |
| July | 33,429 | 62,075 |
| August | 52,881 | 85,979 |
| September | 43,281 | 54,064 |
| January to September | 573,195 | 946,426 |
Source: Challenger, Gray and Christmas, September 2026 report [1].
Third-quarter 2026 cuts totaled 129,591, down 43% from 226,242 in the second quarter and down 36% from 202,118 in the third quarter of 2025 [1]. The year-over-year comparison is flattered by government: the 2025 total included 299,755 government job cuts through September, against 23,010 in 2026, a 92% decline [1]. Excluding government, announced cuts were down 15%, to 550,185 from 646,671 [1].
Which industries are cutting the most jobs?
| Industry | Cuts January to September 2026 | Same period 2025 | Change |
|---|---|---|---|
| Technology | 165,925 | 107,878 | +54% |
| Transportation | 44,430 | 15,329 | +190% |
| Health care and products | 37,417 | 39,917 | -6% |
| Consumer products | 30,652 | 37,624 | -19% |
| Services | 30,084 | 61,590 | -51% |
| Food | 29,693 | 16,835 | +76% |
| Retail | 14,434 | 86,233 | -83% |
Source: Challenger, Gray and Christmas [1]. Consumer products change calculated from the figures shown.
Twenty-one of the 30 industries Challenger tracks announced fewer cuts than a year earlier [1]. The increases are concentrated in technology, transportation, food and financial technology, where cuts rose 331% to 7,806 [1]. In September, technology companies announced 10,799 cuts, up 77% from August, and food producers 7,326, including 5,396 at orchards and agricultural employers in Washington state that cited lower demand [1].
Among large companies, Meta Platforms (META) disclosed a headcount reduction in May 2026 affecting about 8,000 employees and recorded $1.18 billion of severance costs in the second quarter [5]. Meta's headcount was 75,472 on June 30, down 1% from a year earlier, and the company said most of the affected employees would leave its headcount by the end of the third quarter [5].
Is AI causing layoffs in 2026?
Employers increasingly say so. Artificial intelligence was cited in 120,136 announced job cuts through September, about 21% of the total and the leading reason of 2026, ahead of market and economic conditions (114,124) [1]. In September alone, AI was the fifth-most cited reason, with 3,961 cuts, or about 9% [1]. Market and economic conditions led in September with 8,789 cuts, and "demand downturn" was cited for 6,515, the most since February 2023 [1].
The official data show the same pattern in one industry. In the September jobs report, employment in the information sector, which includes software publishing, fell by 10,000 after an 18,000 drop in August, and CNBC linked the decline to worries over the effect of AI on jobs [4][6].
Andy Challenger, the firm's chief revenue officer, described "a wait-and-see period," citing "high energy costs, an uncertain war in Iran, a rate hike that could make hiring more expensive, plus the likelihood of surging healthcare costs" [1].
What do official layoff measures show?
Government data show layoffs remain low by historical standards. The BLS Job Openings and Labor Turnover Survey counted 1.6 million layoffs and discharges in August 2026, a rate of 1.0% of employment, essentially unchanged from July [2]. Job openings were 7.1 million and hires 5.2 million [2].
Weekly claims for unemployment insurance, a near-real-time measure of layoffs, stayed low. DataPorium data show initial claims of 197,000 in the week ending October 3, 2026, and a range of 189,000 to 217,000 in every week since early July [3]. The unemployment rate was 4.2% in September [4].
The weak spot is hiring, not firing. Employers announced plans to hire 90,787 workers in September, down 23% from a year earlier and the lowest September since 2011, as seasonal retail hiring plans came in lighter than last year [1]. Payroll growth slowed to 29,000 in September [4].
What are the other main reasons for job cuts?
After AI and market conditions, the most common reasons employers gave in 2026 were closings, cited for 99,092 cuts through September, and restructuring, cited for 79,892 [1]. In September, closings accounted for 7,719 cuts and restructuring for 6,243 [1]. Contract losses accounted for 1,116 of the 3,306 cuts at services firms in September [1].
The quits rate adds a worker's-eye view. In the JOLTS survey, 3.1 million people quit their jobs in August 2026, a rate of 1.9% of employment, unchanged from July [2]. A low quits rate usually means workers are less confident about finding a better job, which fits the picture of slow hiring. The BLS also revised July's layoffs and discharges up by 36,000 to 1.7 million [2].
Where are companies still hiring?
Through September, employers announced plans to hire 210,612 workers, up 3% from 204,939 a year earlier [1]. Retail led with 66,557 planned hires for the year, followed by technology with 22,361 and aerospace and defense with 21,841 [1]. Seasonal plans were smaller than usual: Spirit Halloween and Michaels announced a combined 62,000 seasonal hires, compared with 100,800 announced in September 2025 [1]. "Hiring plans are up over the year, but we're not seeing the surge of hiring plans that come with the holiday season, which suggests a very cautious approach," Andy Challenger said [1].
Announced US job cuts fell 39% to 573,195 through September 2026, but technology cuts rose 54% and AI was cited in 120,136 of them, the leading reason this year.
Frequently asked questions
How many layoffs were there in 2026?
Through September 2026, US employers announced 573,195 job cuts, according to Challenger, Gray and Christmas, the lowest January-to-September total since 2022 [1].
Which industry has the most layoffs in 2026?
Technology, with 165,925 announced cuts through September, followed by transportation (44,430) and health care and products (37,417) [1].
How many layoffs are due to AI in 2026?
Employers cited artificial intelligence in 120,136 announced job cuts through September 2026, about 21% of the total [1].
Are layoffs rising in October 2026?
Not in the latest weekly data: initial jobless claims were 197,000 in the week ending October 3, 2026 [3]. Challenger's October report and the September JOLTS report, due November 3, will add detail [2].
Sources & References
- [1] Challenger, Gray and Christmas, Challenger Report, September 2026 (October 1, 2026)
- [2] BLS, Job Openings and Labor Turnover, August 2026 (released September 29, 2026)
- [3] DataPorium Economic Metrics (weekly initial jobless claims)
- [4] BLS, The Employment Situation, September 2026 (released October 2, 2026)
- [5] Meta Platforms, Meta Reports Second Quarter 2026 Results (July 29, 2026)
- [6] CNBC, Labor market faltered in September as jobs increased by just 29,000 (October 2, 2026)
