CHALLENGER, GRAY & CHRISTMAS JOB CUT ANNOUNCEMENT REPORT April 2026 CHALLENGER REPORT View More Challenger Insights here FOR RELEASE AT 5:30 A.M. ET, THURSDAY, MAY 7, 2026 VOLITILITY CONTINUES: APRIL CUTS RISE 38% OVER MARCH; YTD DOWN 50%. AI LEADS REASONS FOR SECOND MONTH IN A ROW CHICAGO, May 7, 2026 – U.S.-based employers announced 83,387 job cuts in April, up 38% from the 60,620 job cuts recorded in March. It is down 21% from the 105,441 cuts announced during the same month last year, according to a report released Thursday from global outplacement and executive coaching firm Challenger, Gray & Christmas. April’s total is the third highest since 2009: 105,441 job cuts recorded in April 2025 and 671,129 in April 2020. So far this year, employers have announced 300,749 job cuts, down 50% from the 602,493 cuts recorded through April 2025. “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, workplace expert and chief revenue officer for Challenger, Gray & Christmas. CHALLENGER, GRAY & CHRISTMAS JOB CUT ANNOUNCEMENT REPORT WHICH INDUSTRIES CUT THE MOST IN APRIL? Technology Technology announced 33,361 job cuts in April for a total of 85,411 this year. That is a 33% increase from the 64,118 layoffs announced in this sector in the same period last year. It is the highest year- to-date total for the sector since 2023, when 113,944 Technology cuts were recorded. Government Entities in federal, state, and local Government announced plans to cut 9,149 jobs, the highest monthly total since the sector cut 216,915 jobs in March 2025, 99.9% of which were due to Department of Government Affairs Actions. (The remainder came from the closing of an U.S. Army Depot.) For the year, the sector has announced 11,419 layoff plans, down 96% from the 282,227 cuts announced through April 2025. Warehousing Warehousing announced 5,743 cuts in April for a total of 10,512 so far in 2026. This is down 65% from the 30,057 cuts announced in this sector through April 2025. Services The Services sector cut 4,110 jobs in April for a total of 10,797. That is a 50% decrease from the 21,781 job cuts announced in this sector through April last year. OTHER INDUSTRIES CUTTING JOBS Pharmaceutical Pharmaceutical companies have announced plans to cut 7,440 jobs through April, an increase of 500% from the 1,238 cuts announced in the same period in 2025. “Layoffs typically occur at Pharma companies when patents expire, but the sector is also undergoing significant disruptions with new technology, competition, consumer behavior, and government regulations,” said Challenger. Chemical Chemical companies announced 4,975 job cuts, an increase of 167% from the 1,863 cuts announced through April 2025. “The primary reason cited for Chemical cuts this year is AI, but foreign competition is also at play and causing makers to cut back workers,” said Challenger. Source: Challenger, Gray & Christmas CHALLENGER, GRAY & CHRISTMAS JOB CUT ANNOUNCEMENT REPORT Industrial Manufacturing Through April, Industrial Goods Manufacturers announced plans to cut 7,799 job cuts, up 71% from the 4,563 cuts announced in the same period in 2025. “Tariffs, an ongoing war in Iran, automation and AI, and shifting consumer behavior are all impacting manufacturing companies in a way that is likely to cost jobs,” said Challenger. Media & News The Media industry announced 1,462 cuts in April, nearly doubling the total for the year to 2,954. This is down 18% from the 3,605 cuts announced in this sector through April 2025. News, which Challenger tracks as a subset of Media and includes broadcast, digital, and print, has announced 200 job cuts in April, for a total of 839. That is up 46% from the 573 cuts announced during the same period last year. WHY ARE COMPANIES CUTTING? In April, Artificial Intelligence (AI) led all reasons for job cuts for the second month in a row, with 21,490 announced during the month, 26% of total cuts. This reason has been cited for 49,135 cuts this year, and it is the third-leading cause of layoff plans. AI accounts for roughly 16% of all 2026 job cut plans, up from 13% through March. Closings followed with 14,782, Cost-Cutting was cited for 12,912, and Voluntary Severance/Buyouts accounted for 9,295 planned layoffs. So far in 2026, Market and Economic Conditions lead all reasons year-to-date with 53,058 cuts, followed by Closings with 52,187. Restructuring was cited for 42,307 layoff plans, and Contract Loss caused with 34,484 job cuts. HIRING PLANS IN 2026 Hiring plans fell 69% in April to 10,049 from 32,826 in March. They are down 38% from the 16,191 hiring plans announced in April 2025. So far this year, employers have announced plans to hire 60,936 workers, down 13% from 70,058 new hires announced during the same period in 2025. Government led April hiring with 2,350 announced positions, followed by Technology with 1,980 and Food with 1,348. Year-to-date, Automotive leads all industries with 12,258 hiring plans, more than double the 4,874 announced through April 2025. Entertainment/Leisure is second with 8,261, though that figure is down 70% from 28,000 a year ago. Source: Challenger, Gray & Christmas CHALLENGER, GRAY & CHRISTMAS JOB CUT ANNOUNCEMENT REPORT Aerospace/Defense (7,366) and Government (7,268) round out the top four, with Aerospace/Defense up 165% year-over-year and Consumer Products (5,700) and Industrial Goods (3,971) more than doubling their year-ago totals. Several sectors that drove last year's hiring have pulled back sharply: Insurance is down 79% (2,575 vs. 12,000), Technology is down 51% (2,230 vs. 4,510), and the steep drop in Entertainment/Leisure summer announcements accounts for most of the overall YTD decline. “With a number of factors potentially impacting summer travel plans as well as how businesses operate across sectors, we predict hiring plans will remain muted,” said Challenger. Source: Challenger, Gray & Christmas CHALLENGER, GRAY & CHRISTMAS JOB CUT ANNOUNCEMENT REPORT Table 1: EXECUTIVE SUMMARY TOP FIVE INDUSTRIES Year To Date 2026 2025 Technology 85,411 64,118 Transportation 33,479 5,679 Health Care/Products 27,162 19,494 Education 15,260 7,243 Government 11,419 282,227 MONTH BY MONTH TOTALS 2026 2025 January 108,435 49,795 February 48,307 172,017 March 60,620 275,240 April 83,387 105,441 May 93,816 June 47,999 July 62,075 August 85,979 September 54,064 October 153,074 November 71,321 December 35,553 TOTAL 300,749 1,206,374 Some reductions are identified by employers as workers who will take early retirement offers or other special considerations to leave the company. LAYOFF LOCATION YTD 2026 YTD 2025 California 41,857 68,063 Texas 37,065 24,425 Georgia 34,759 25,254 Washington 31,674 7,632 Michigan 23,831 8,350 Listings are identified by the location of the layoff or corporate headquarters as stated in announcement. Source: Challenger, Gray & Christmas CHALLENGER, GRAY & CHRISTMAS JOB CUT ANNOUNCEMENT REPORT Table 2: JOB CUTS BY INDUSTRY Industry 25-Apr 26-Mar 26-Apr YTD 2025 YTD 2026 Aerospace/Defense 47 119 207 1,061 3,640 Apparel 125 299 1,400 1,176 4,707 Automotive 1,989 3,160 2,712 9,135 10,263 Chemical 37 173 101 1,863 4,975 Construction 451 118 369 1,355 1,784 Consumer Products 4,071 2,508 3,329 18,690 11,253 Education 3,001 5,258 3,793 7,243 15,260 Electronics 544 1,050 319 5,747 3,656 Energy 1,550 72 311 3,324 1,319 Entertainment/Leisure 2,147 1,115 1,403 8,484 5,757 Financial 1,857 5,114 1,336 17,839 10,733 FinTech 502 1,143 672 Food 1,632 1,505 2,759 6,526 8,078 Government 2,782 1,127 9,149 282,227 11,419 Health Care/Products 7,654 4,292 3,642 19,494 27,162 Industrial Goods 851 1,235 879 4,563 7,799 Insurance 310 389 25 2,346 3,391 Legal 0 0 Media 1,785 352 1,462 3,605 2,954 Mining 60 92 1,393 1,357 Non-Profit 2,496 513 2,670 5,453 4,416 Pharmaceutical 315 5,356 1,062 1,238 7,440 Real Estate 693 101 53 1,323 235 Retail 7,235 2,446 1,171 64,319 10,065 Services 3,731 2,543 4,110 21,781 10,797 Technology 27,021 18,720 33,361 64,118 85,411 Telecommunications 9,295 688 412 10,135 1,754 Transportation 1,662 539 1,238 5,679 33,479 Utility 110 135 279 1,176 461 Warehousing 22,050 1,131 5,743 30,057 10,512 TOTAL 105,441 60,620 83,387 602,493 300,749 Source: Challenger, Gray & Christmas CHALLENGER, GRAY & CHRISTMAS JOB CUT ANNOUNCEMENT REPORT Table 3: JOB CUTS BY REGION, STATE EAST Apr-26 YTD 2026 YTD 2025 WEST Apr-26 YTD 2026 YTD 2025 Connecticut 84 3,764 930 Alaska 500 30 Delaware 50 90 Arizona 681 1,080 9,820 California 8,645 41,857 68,063 Dist. of Columbia 8,768 10,478 282,596 Colorado 2,913 4,608 2,513 Maine 200 4,517 Hawaii 991 312 Maryland 1,034 2,013 5,883 Idaho 211 949 258 Massachusetts 1,721 5,866 5,699 Montana 70 244 New Hampshire 90 0 Nevada 135 3,091 1,304 New Jersey 4,946 9,604 19,549 New Mexico 33 33 0 New York 3,603 16,208 44,794 North Dakota 140 0 Pennsylvania 829 8,231 9,104 Oklahoma 92 904 Rhode Island 90 373 Oregon 2,021 5,551 541 Vermont 53 265 86 South Dakota 0 373 Texas 19,712 37,065 24,425 TOTAL 21,038 56,859 373,621 Utah 176 367 281 Washington 9,646 31,674 7,632 MIDWEST Apr-26 YTD 2026 YTD 2025 Wyoming 9 28 Illinois 1,279 8,795 5,762 TOTAL 44,173 128,077 116,728 Indiana 883 1,800 492 Iowa 667 1,998 3,347 SOUTH Apr-26 YTD 2026 YTD 2025 Kansas 123 267 2,499 Alabama 221 1,537 1,632 Michigan 2,148 23,831 8,350 Arkansas 42 42 340 Minnesota 142 994 3,926 Florida 2,578 11,536 11,739 Georgia 824 34,759 25,254 Missouri 337 1,346 2,132 Kentucky 395 1,263 2,142 Nebraska 22 316 4,150 Louisiana 85 0 Ohio 1,544 5,885 25,811 Mississippi 844 844 660 Wisconsin 790 3,237 1,612 North Carolina 582 4,867 3,971 TOTAL 7,935 48,469 58,081 South Carolina 2,950 4,821 1,063 Tennessee 619 3,308 6,215 Virginia 954 3,320 882 West Virginia 232 962 165 TOTAL 10,241 67,344 54,063 Source: Challenger, Gray & Christmas CHALLENGER, GRAY & CHRISTMAS JOB CUT ANNOUNCEMENT REPORT Table 4: JOB CUTS BY REASON Reason Apr-26 YTD 2026 Market/Economic Conditions 7,955 53,058 Closing 14,782 52,187 Artificial Intelligence 21,490 49,135 Restructuring 4,391 42,307 Contract Loss 2,667 34,484 Cost-Cutting 12,912 28,894 Voluntary Severance/Buyouts 9,295 9,656 Acquisition/Merger 1,833 9,367 Demand Downturn 3,518 8,220 Bankruptcy 1,630 3,251 EV Tax Credit Expiration 2,058 Financial Loss 1,186 2,058 No Reason Provided 860 1,402 Technological Update (automation) 1,353 DOGE Downstream Impact 826 Consolidation 276 593 Relocation (Domestic) 449 Federal Cuts/Shutdown 432 432 Relocation (International) 341 Tariffs 37 331 Government Regulations 148 Avian Flu 87 87 Legal Trouble 76 Natural Disaster 36 36 TOTAL 83,387 300,749 Source: Challenger, Gray & Christmas CHALLENGER, GRAY & CHRISTMAS JOB CUT ANNOUNCEMENT REPORT Table 5: QUARTER BY QUARTER Q1 Q2 Q3 Q4 TOTAL 1989 9,850 10,100 24,085 67,250 111,285 1990 107,052 87,686 49,104 72,205 316,047 1991 110,056 76,622 147,507 221,107 555,292 1992* 110,815 85,486 151,849 151,850 500,000 1993 170,615 84,263 194,486 165,822 615,186 1994 192,572 107,421 117,706 98,370 516,069 1995 97,716 114,583 89,718 137,865 439,882 1996 168,695 101,818 91,784 114,850 477,147 1997 134,257 51,309 95,930 152,854 434,350 1998 139,140 131,303 161,013 246,339 677,795 1999 210,521 173,027 173,181 118,403 675,132 2000 141,853 81,568 168,875 221,664 613,960 2001 406,806 370,556 594,326 585,188 1,956,876 2002 478,905 292,393 269,090 426,435 1,466,823 2003 355,795 274,737 241,548 364,346 1,236,426 2004 262,840 209,895 251,585 315,415 1,039,735 2005 287,134 251,140 245,378 288,402 1,072,054 2006 255,878 180,580 202,771 200,593 839,822 2007 195,986 197,513 194,095 180,670 768,264 2008 200,656 275,292 287,142 460,903 1,223,993 2009 578,510 318,165 240,233 151,122 1,288,030 2010 181,183 116,494 113,595 118,701 529,973 2011 130,749 115,057 233,258 127,018 606,082 2012 143,094 139,997 102,910 137,361 523,362 2013 145,041 113,891 128,452 121,667 509,051 2014 121,341 124,693 117,374 119,763 483,171 2015 140,214 147,458 205,759 105,079 598,510 2016 180,920 132,834 121,858 91,303 526,915 2017 126,201 100,799 94,478 97,292 418,770 2018 140,379 104,800 120,879 172,601 538,659 2019 190,410 140,577 133,882 127,687 592,556 2020 346,683 1,238,364 497,215 222,493 2,304,755 2021 144,686 67,975 52,560 56,749 321,970 2022 55,696 77,515 76,284 154,329 363,824 2023 270,416 187,793 146,305 117,163 721,677 2024 257,254 177,391 174,597 152,116 761,358 2025 497,052 247,256 202,118 259,948 1,206,374 2026 217,362 217,362 AVG 208,009 181,307 176,025 187,106 Source: Challenger, Gray & Christmas CHALLENGER, GRAY & CHRISTMAS JOB CUT ANNOUNCEMENT REPORT Table 6: ANNOUNCED HIRING PLANS By Month 2026 2025 2024 2023 2022 2021 2020 2019 January 5,306 6,089 5,376 32,764 77,630 72,063 23,229 74,040 February 12,755 34,580 10,317 28,830 215,127 146,403 88,202 15,279 March 32,826 13,198 21,102 9,044 105,224 97,767 824,610 96,368 April 10,049 16,191 9,802 23,310 88,622 76,345 285,639 258,302 May 9,683 4,236 7,885 126,083 49,118 38,981 8,663 June 3,191 19,087 13,629 102,897 110,093 75,454 11,946 July 3,200 3,676 12,774 25,506 18,281 246,507 22,316 August 1,494 6,101 7,744 41,985 94,004 160,411 24,937 September 117,313 403,893 590,353 380,014 939,790 929,860 459,689 October 283,138 266,743 35,202 237,380 52,042 255,198 190,835 November 9,074 11,621 15,566 30,203 6,527 185,504 19,063 December 10,496 7,999 3,022 51,693 89,984 77,267 26,313 TOTAL 60,936 507,647 769,953 780,123 1,482,364 1,752,417 3,190,862 1,207,751 YTD 70,058 46,597 93,948 486,603 392,578 1,221,680 443,989 Monthly 42,304 64,163 65,010 123,530 146,035 265,905 100,646 Average Source: Challenger, Gray & Christmas CHALLENGER, GRAY & CHRISTMAS JOB CUT ANNOUNCEMENT REPORT Table 7: ANNOUNCED HIRING PLANS Industry 26-Apr YTD 2026 YTD 2025 Aerospace/Defense 596 7,366 2,776 Apparel 300 300 98 Automotive 12,258 4,874 Chemical 50 213 40 Construction 251 860 0 Consumer Products 885 5,700 2,215 Education 150 292 0 Electronics 30 380 175 Energy 150 1,400 1,070 Entertainment/Leisure 8,261 28,000 Financial 630 930 75 FinTech 0 2,130 Food 1,348 1,755 192 Government 2,350 7,268 7,056 Health Care/Products 216 846 300 Industrial Goods 311 3,971 1,722 Insurance 2,575 12,000 Legal 0 0 Media 0 0 Mining 0 900 Non-Profit 32 0 Pharmaceutical 75 400 Real Estate 0 0 Retail 32 1,157 0 Services 707 70 Technology 1,980 2,230 4,510 Telecommunications 0 100 Transportation 980 305 Utility 770 1,380 760 Warehousing 0 290 TOTAL 10,049 60,936 70,058 Source: Challenger, Gray & Christmas