Challenger Job Cuts Report

Data Employment

Source: Challenger Gray
Source Link: https://www.challengergray.com/
Frequency: Monthly
Next Release(s): May 7th, 2026 7:30 AM

Latest Updates

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U.S. employers announced 48,307 job cuts in February (-55% MoM; -72% YoY), a sharp pullback from January’s elevated layoffs while hiring plans rose monthly but remained significantly lower year-to-date.
- Employers announced 48,307 layoffs in February, down -55% MoM from 108,435 in January and -72% YoY from 172,017 in February 2025, indicating a sharp decline following the surge in cuts at the start of the year.
- Through the first two months of 2026, announced layoffs totaled 156,742, the fifth-highest January-February total since 2009 but still the lowest two-month total since 2022 when 34,309 cuts were recorded.
- Technology companies announced 11,039 job cuts in February and 33,330 cuts YTD, a +51% increase from 22,042 cuts in the same period last year, reflecting pressures from AI adoption, regulatory concerns, slower digital advertising, and higher funding and labor costs.
- Transportation firms have announced 31,702 job cuts so far in 2026, up +872% YoY from 3,261 in the same period last year, making it the second-largest contributor to layoffs amid rising oil costs and supply chain disruptions tied to geopolitical tensions.
- Education announced 5,417 job cuts in February and 6,209 YTD, up +96% YoY from 3,160, as school districts adjust staffing amid declining enrollment, federal funding reductions, and rising operational costs.
- Healthcare and health product companies have announced 19,228 layoffs YTD, the highest January-February total for the sector since 2021, while industrial manufacturing has cut 5,685 jobs YTD (+143% YoY).
- Closings led February layoff reasons with 10,736 cuts, followed by market and economic conditions (10,114), restructuring (9,146), and cost-cutting (5,636), while year-to-date layoffs are most frequently attributed to market conditions (38,506).
- Hiring plans increased to 12,755 in February (+140% MoM) but remained -63% YoY below February 2025, leaving announced hiring plans at 18,061 YTD, down -56% YoY from 40,669 during the same period last year.
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U.S. employers announced 108,435 job cuts in January 2026 (+205% MoM; +118% YoY), marking the highest January layoff total since 2009 and the largest monthly total since October 2025.
- Transportation led layoffs with 31,243 cuts, almost entirely driven by UPS’s 30,000 job reduction following the end of its Amazon contract.
- Technology firms announced 22,291 cuts, with Amazon accounting for 16,000 as part of management restructuring efforts.
- Healthcare and health product companies posted 17,107 cuts, the highest monthly total for the sector since April 2020, reflecting rising cost pressures and lower reimbursements.
- Chemical manufacturers announced 4,701 cuts, the largest monthly figure since February 2016, largely tied to automation and AI-driven restructuring at Dow Inc.
- The main drivers of layoffs were contract losses (30,784), market and economic conditions (28,392), restructuring (20,044), and closures (12,738), highlighting multiple sources of workforce reduction.
- AI-related layoffs totaled 7,624 (7% of January cuts), while tariff-related cuts reached 294, indicating a smaller but present policy impact.
- Hiring plans fell to 5,306 in January (-49% MoM; -13% YoY), the lowest January total on record since tracking began in 2009.
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U.S. employers announced 35,553 job cuts in December 2025 (-50% MoM; -8% YoY), marking the lowest monthly total in 17 months and signaling a year-end slowdown in layoff activity.
- December job cuts fell from 71,321 in November to 35,553 (-50% MoM) and were below December 2024 levels (-8% YoY), making it the fourth month in 2025 with fewer cuts than the same month a year earlier.
- For full-year 2025, employers announced 1.21M job cuts (+58% YoY), the highest annual total since 2020 and the seventh-highest year on record since tracking began in 1989.
- Fourth-quarter job cuts totaled 259,948, up +29% QoQ and +71% YoY, making it the highest Q4 total since 2008 and highlighting elevated restructuring late in the year despite December’s moderation.
- Government led all sectors in 2025 with 308,167 announced cuts (+703% YoY), largely driven by federal layoffs concentrated in Q1, with activity tapering sharply over the remainder of the year.
- Technology led private-sector layoffs with 154,445 cuts in 2025 (+15% YoY), while Warehousing (95,317; +317% YoY), Retail (92,989; +123% YoY), and Services (74,796; +68% YoY) also saw sharp increases tied to restructuring, automation, and demand shifts.
- The top reasons for layoffs in 2025 were DOGE-related actions (293,753), market and economic conditions (253,206), store or unit closings (191,480), and restructuring (133,611), while AI-related cuts totaled 54,836 for the year.
- Hiring plans showed a modest year-end improvement, with 10,496 hires announced in December (+16% MoM; +31% YoY), but total planned hires for 2025 fell to 507,647 (-34% YoY), the lowest annual level since 2010, alongside the weakest seasonal hiring on record.
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U.S. employers announced 71,321 job cuts in November 2025 (+24% YoY, -53% MoM), marking the highest November total since 2022 but a sharp pullback from October’s spike.
- Year to date, employers have announced 1.17M job cuts (+54% YoY), the highest January–November total since 2020 and only the sixth time since 1993 that cuts have exceeded 1.1M by this point in the year.
- Telecommunications led November activity with 15,139 cuts, the highest for the sector since April 2020; YTD telecom cuts reached 38,035 (+268% YoY), driven largely by major provider actions.
- Technology firms announced 12,377 cuts in November, bringing the YTD total to 153,536 (+17% YoY) and keeping the sector at the top of private-sector layoffs.
- Food companies reported 6,708 cuts in November and 34,165 YTD (+26% YoY), while the Services sector saw 5,509 cuts (+64% YoY YTD), reflecting rising pressure across operational support industries.
- Retailers announced 3,290 cuts in November and 91,954 YTD (+139% YoY), tied to softening demand, tariff uncertainty, and shifting consumer behavior.
- Non-profits announced 28,696 cuts YTD (+409% YoY) amid funding reductions, higher costs, and lower donations; Media cuts rose to 17,163 YTD (+18% YoY), though News-specific layoffs fell -50% YoY.
- Restructuring was the top reason for November layoffs (20,217), followed by closings (17,140), economic conditions (15,755), and AI-related adjustments (6,280); DOGE-related impacts remained the largest YTD driver, cited in 293,753 planned layoffs.
- Planned hiring totaled 497,151 YTD (-35% YoY), the lowest since 2010, with 372,520 seasonal hires—the smallest seasonal tally since tracking began in 2012—highlighting weak labor-demand momentum heading into year end.
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U.S. employers announced 153,074 job cuts in October 2025 (+183% MoM, +175% YoY), marking the highest October total since 2003 and signaling intensified layoffs tied to cost-cutting, AI adoption, and weaker demand.
- YTD layoffs reached 1.10M (+65% YoY), already surpassing 2024’s full-year total by +44%, and marking the highest January–October total since 2020.
- Technology led with 33,281 cuts in October (up sharply from 5,639 in September), bringing the YTD total to 141,159 (+17% YoY), reflecting restructuring tied to AI and efficiency initiatives.
- Warehousing announced 47,878 cuts, up from 984 in September, with the YTD total surging to 90,418 (+378% YoY) amid automation-driven overcapacity adjustments.
- Retail job cuts totaled 2,431 (down slightly MoM), but YTD layoffs rose to 88,664 (+145% YoY) as firms continued to trim costs and adapt to shifting consumer spending.
- Consumer Products layoffs increased to 3,409 (+72% MoM), with 41,033 YTD (+21% YoY), reflecting output adjustments to softer demand.
- Cost-cutting was the top layoff reason in October (50,437 cuts), followed by AI-related restructuring (31,039) and economic conditions (21,104).
- Planned hiring fell to 488,077 YTD (-35% YoY), the lowest January–October total since 2011, including just 372,520 seasonal hires, also a record low for the series.
- Challenger noted that layoffs announced late in the year are unusual, with October marking the highest single-month Q4 total since 2008, underscoring the current wave of corporate belt-tightening.
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U.S. employers announced 54,064 job cuts in September 2025, down -37% MoM and -26% YoY, making it one of only three months this year where cuts were lower than the prior year, though YTD layoffs remain the highest since 2020.
- Q3 job cuts totaled 202,118, the highest for any third quarter since 2020, up +16% YoY but -18% from Q2 2025.
- YTD cuts reached 946,426, up +55% YoY and already +24% above the full-year 2024 total, the fifth-highest January–September total in 36 years.
- The government sector accounted for 299,755 cuts YTD, largely from federal workforce reductions tied to DOGE, though 5,656 rescinded layoffs were tracked in September.
- Technology firms announced 107,878 cuts YTD (-8% YoY), with 17,375 explicitly attributed to artificial intelligence, including 7,000 in September alone.
- Retail layoffs surged to 86,233 YTD (+203% YoY), reflecting sector caution ahead of the holiday hiring season.
- Media job cuts rose to 14,060 YTD (+9% YoY), though news industry layoffs fell sharply (-49% YoY).
- Regionally, the East posted the largest increase (+193% YoY), led by Washington D.C. (+759% YoY), while the South saw +29% YoY growth, the West dipped -2%, and the Midwest was flat.
- Employers announced only 204,939 hiring plans YTD (-58% YoY), the lowest January–September total since 2009, with seasonal hiring especially weak.
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U.S. employers announced 85,979 job cuts in August 2025, up +39% MoM and +13% YoY, marking the highest August total since 2020 and extending the year’s trend of elevated layoffs.
- YTD job cuts reached 892,362, up +66% YoY and already +17% above 2024’s full-year total, the highest January–August tally since 2020.
- Pharma led sector cuts in August with 19,112 layoffs (22,433 YTD, +142% YoY), while finance announced 18,092 (44,986 YTD, +27% YoY).
- Retail cuts totaled 83,656 YTD, a +242% YoY surge, reflecting pressures from tariffs, inflation, and bankruptcies.
- Non-profit layoffs hit 22,151 YTD (+449% YoY), the highest since 2020, while tech cuts (102,239 YTD) fell -3% YoY.
- Regionally, East-based cuts rose +224% YoY, led by Washington D.C. federal reductions (+754%), while the West remained flat and the Midwest and South saw more moderate increases.
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U.S. employers announced 62,075 job cuts in July 2025, up +29% MoM and +140% YoY, bringing the YTD total to 806,383—the highest since 2020 and already surpassing 2024’s full-year total.
- The top drivers of layoffs YTD are Federal budget cuts ("DOGE Impact", 289,679 cuts), economic conditions (171,083), closures (120,226), and AI/tech automation (20,219).
- Retail (80,487, +249% YoY), Tech (89,251, +36% YoY), and Non-Profits (17,826, +413% YoY) led private-sector cuts; Government cuts totaled 292,294 YTD.
- Regional job cuts rose most in the East (+219% YoY), with large increases in Washington D.C., New Jersey, and New York.
- Hiring announcements remain low at 86,132 YTD (+17% YoY), led by Entertainment & Leisure (28,190), while Tech hiring plunged -58% YoY to 5,510.
- Tariff-related cuts impacted ~6,000 jobs YTD; Auto sector cuts totaled 16,883 (-31% YoY) but spiked MoM in July.
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U.S. employers announced 47,999 job cuts in June 2025, down -49% MoM and -2% YoY, bringing the Q2 total to 247,256 up 39% YoY and the highest second quarter since the pandemic.
- So far this year, companies have announced 744,308 job cuts, the highest YTD since 2020 when 1,585,047 were announced. Outside of 2020, it is the highest YTD since 896,675 cuts were announced in the first six months of 2009.
- Government led job cuts YTD with 288,628, while Retail (79,865, +255% YoY) and Technology (76,214, +27% YoY) followed among private sectors.
- Non-profits reported 16,930 cuts (+407% YoY), mainly due to federal budget reductions; Media and News cuts declined -46% and -52% YoY, respectively.
- “DOGE Impact” accounted for 286,679 layoffs YTD, followed by economic conditions (154,126), closures (107,142), and restructuring (64,487).
- The East region saw the largest YoY increase in job cuts (+222%), led by Washington D.C. (289,586); Midwest, South, and West regions showed mixed trends.
- Hiring announcements totaled 82,932 YTD (+19% YoY), but remain historically low, with June’s 3,191 hires marking the weakest monthly figure of the year.
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U.S. employers announced 93,816 job cuts in May 2025, down -12% MoM but up +47% YoY, bringing the YTD total to 696,309 (+80% YoY), just shy of 2024’s full-year total.
- The Services sector led with 22,492 cuts in May, the highest since May 2020; Retail followed with 11,483 cuts and 75,802 YTD (+274% YoY).
- Technology cut 10,598 jobs in May, totaling 74,716 YTD (+35% YoY); Non-profits announced 8,565 May cuts, with a 504% YoY increase YTD.
- “DOGE Impact” remains the top reason for layoffs (284,044 YTD), followed by economic conditions (131,257) and closures (94,439).
- The East region saw the biggest surge in job cuts (+234% YoY), led by federal reductions in D.C.; California posted 93,586 cuts (+42% YoY).
- Hiring plans rose to 79,741 YTD (+57% YoY) but remain below pandemic-era highs, indicating cautious labor market expansion.
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Total US job cuts announced in April were 105,441, down -62% MoM from March’s 275,240 but up 63% YoY from April 2024, marking the highest April total since 2020.
- YTD cuts reached 602,493, up 87% YoY and the highest since 2020.
- The government sector leads with 282,227 YTD cuts, 281,452 of which are DOGE-related, up 680% YoY.
- In April, government job cuts totaled just 2,782, a significant drop from the over 64k cuts reported in February and the 216k reported in March.
- Technology saw 27,021 cuts in April (+79% MoM), bringing its YTD total to 64,118 (+35% YoY).
- Retail announced 7,235 April cuts; its YTD total of 64,319 is up 296% YoY.
- Market/Economic Conditions were cited for 95,348 job cuts, as economic uncertainty, consumer spending, and trade difficulties impact US-companies. Tariffs were cited for 1,413 cuts so far this year, with 1,350 occurring in April.
- Hiring plans increased to 16,191 in April (+65% YoY), with 70,058 planned hires YTD (+50% YoY).
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